Simple trigger question

[ALFguy]

I know this is fairly fundamental but I just want to be clear on how stop-loss's work.

Say I'm holding a stock that's trading at 17c and I have a stop loss in place at say 16c.
Let's say during the day the stock rockets to 25c. If I then amend my stop loss to sell at say 23c, am I right in saying it won't trigger unless the price drops below this?
Since the stock traded at 17c during the day, I am unsure if this means the stop-loss will see this and trigger......if that makes sense?

Very newbie question I know!

 

[Sean K]

If you amend the price after the stock has risen it shouldn't trigger. I've done this through HSBCs platform and all seems to be OK. Perhaps you should call your broker?

 

[ALFguy]

Thanks Kennas, I figured it would have to work this way but should probably check with ETrade. Problem is, I can never get through to customer support!
Will try again later.

Cheers

 

[visual]

Afl,
serious about your claim of E TRADE.
I`ve never had a problem,their english leaves a lot to be desired but phone answering has always been done.I mean english comprehension,next time you get through put in a complaint and maybe they`ll give you a different number to reach them from. thats what happened with me,when I complained about their lack of english comprehension. good luck

 

[NettAssets]

I'll have to have a read up on ETrades trailing stops again - I tried to put one on where the trigger point was above the share price and it would not let me.

I thought you where supposed to be able to set them so the price can come up through the trigger but cant go down through it.
Then with the trailing stop the trigger would follow the share price up.
John

 

[CanOz]

I too use ETRADE and directly after i buy a stock i place a conditional order to sell at my chosen Stop point. I usually wait until the end of the day before i assess the new support levels and then modify the condiional order. As Nick Radge advises in his book Adaptive Analysis, you should check and adjust your stops regularly to minimise risk. The sooner you can get to the break even point the sooner your approach a "risk free" trade.

Cheers,

 

[NettAssets]

Yeah that was what I was trying to put on

I wanted the trigger price higher than my buy price in case I haven't picked the bottom ( and I haven't really tried to) then if and when the share price comes up through the trigger I want it to start trailing , but I cant figure out how to put it on.
John

 

[CanOz]

Ok John, i understand now what your trying to do. I went through all the possible combinations of cond.orders and i cannot figure out how you would do that. Is there a reason you don't like to place a stop loss at the last support level, i use candle stick charts and look for the last support, such as a tweezer bottom, or double bottom.

 

[NettAssets]

Ok John, i understand now what your trying to do. I went through all the possible combinations of cond.orders and i cannot figure out how you would do that. Is there a reason you don't like to place a stop loss at the last support level, i use candle stick charts and look for the last support, such as a tweezer bottom, or double bottom.

I don't have any problem putting in a stop at an initial support level but with a trade on very volatile small resources I wanted a very tight trailing stop once the deal was in profit.
I could not find a way to put on a sufficiently low stop to avoid getting stopped out if there was still some downside but then ratcheting the trailing stop up really tight once it was in positive territory.
I will have to have another play around with it
John