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lols ok ic
Stop Loss - where to set it?
- Thread starter gamefisherman
- Start date
Yes it stops loss
But it's true function is to
Maximize GAINS
By getting YOU OUT so you can GET IN
motorway
white_goodman
BOC
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by picking the stocks wisely i wouldnt have bought hih in the first place
now say i bought mqg at 60$ which i did
and then it went to 40$ (buy some more)
and then it went to 17$ ( sell my house and buy some more)
and now its $40 (sell some proportionally to how much you invested at each step) not all of it though, not yet
As long as the stock doesnt pack up ( hih, abs) then this strategy usually works
Im still new so be nice
black swans, they always happen
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by picking the stocks wisely i wouldnt have bought hih in the first place
now say i bought mqg at 60$ which i did
and then it went to 40$ (buy some more)
and then it went to 17$ ( sell my house and buy some more)
and now its $40 (sell some proportionally to how much you invested at each step) not all of it though, not yet
As long as the stock doesnt pack up ( hih, abs) then this strategy usually works
Im still new so be nice
What happens when you run out of money? Or the stock doesn't go back up to $40?
now say i bought mqg at 60$ which i did
and got stopped out for small loss
and then it went to 40$
and I bought many more BUT got stopped out for a small loss again
and then it went to 17$
And since I had lots of cash I bought 3.5 times more than I ever thought possible..
and now its $40
I might buy an Island and retire
motorway
lol, exactly
now say i bought mqg at 60$ which i did
and got stopped out for small loss
and then it went to 40$
and I bought many more BUT got stopped out for a small loss again
and then it went to 17$
And since I had lots of cash I bought 3.5 times more than I ever thought possible..
and now its $40
I might buy an Island and retire
motorway
absolute gold!!!!!
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Quick question
once you get stopped out
how do u know when to get back in >?
once you get stopped out
how do u know when to get back in >?
now say i bought mqg at 60$ which i did
and got stopped out for small loss
and then it went to 40$
and I bought many more BUT got stopped out for a small loss again
and then it went to 17$
And since I had lots of cash I bought 3.5 times more than I ever thought possible..
and now its $40
I might buy an Island and retire
motorway
This is all very well, (and so is tech's chart), but in an ideal world, when do you know when to get back in? What if the guy got stopped out at $17.00 and then kept getting stopped out all the way up to $30.00 (even up-trending stocks swing around a bit), before giving up?
When a situation develops that you can trade with positive expectancy. For example, if you follow trends, you'd wait for a new trend to develop.
With the example
it is possible a trader could have ( need not )
A working hypothesis
eg for xyz this stock will rebound for reasons abc
OK Hypothesis = a working guess ( technical , fundamental or hybrid )
Must be tested
Must look for disconfirmation
When there is none that is your entry
So the Chart is beginning and ending
When do you enter
When the chart allows you to
and the entry matters
as your post suggests
and while you were in cash maybe you did not buy mqg
But were making too much money to be worried. because you bought something else
To paraphrase someone else
everything works until it doesn't
The chart provides that answer
If there is no red light
then proceed with caution
When do you enter
when ( the very when )
It stops going down and starts going up...
( This is a defined entry )
Now this very when becomes a question of the scale of magnitude
you are operating on ( or want to )
So called long term is different to
short term
The hurdle at the turning point is different
This is about what size are the jumps you measure
( throw long ( or even all ) moving averages in the bin where they belong imvho )
http://www.clayallen.com/hypothesis testing cluster.pdf
motorway
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how much does a stop loss cost ?
etrade?
etrade?
tech/a
No Ordinary Duck
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A lot less than not having one!
Comsec give the option of $9.95 pay up-front, or $14.95 upon being triggered - these amounts are min for trades up to approx $20,000. Not sure about etrade, but would assume similar? I've found the cost of the extra brokerage is less than the loss that would have been sustained without one
Get a decent broker, shouldn't cost you anything.
Maquarie Prime stops are free and the platform is heaps better then Commsec. It lets you set stops as well as limit orders that trigger when a price is reached, you can also short stocks.
Or if you are really serious about trading (as opposed to investing) Interactive brokers offers even more features as well as $6 brokerage on Aussie stocks as well as a range of other markets.
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Reckon! Paying for stops, bugger that. Go with someone worthwhile. Paying for it would not be helping its whole purpose, to minimize loss, have to allow for the cost of actually having it too
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Who do you recommend?
tech/a
No Ordinary Duck
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IB is the best in my view but min capital is $15k US (I think).
You cant trade pretty well anything in the world and have all sorts of conditional orders.
$6 both ways for trades of $10K or less.
their TWS platdorm is fantastic.
But a real pain to set up an account.
Worth it though I like the security features.
You cant trade pretty well anything in the world and have all sorts of conditional orders.
$6 both ways for trades of $10K or less.
their TWS platdorm is fantastic.
But a real pain to set up an account.
Worth it though I like the security features.
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$3k for 21 or under.
Absolutely fantastic system. Has a bazillion different conditional orders all free.
Still cant believe commsuc and efail charge extra for conditional orders...
Maquarie Prime or Interactive Brokers depending on your goals and trading/investing methods.
As Tech said with IB it is a bit of a process and min funds are required and with no chess sponsorship it probably isn't the best for longer term investing.
With Mac Prime brokerage is $20 min but has good features compared to Commsec & Etrade. Also gives you access to higher margin levels then IB.
