Walt Disney Stop Loss Triggering

[robertbanking]

Hello you wonderful and kind people that make up this forum. Hope you are doing well and enjoying your weekend.

I wanted to kindly ask regarding how tight stop losses are at triggering please. For instance as an example if i invested in Walt Disney (NYSE: DIS). The current price is around 102.50 USD. If i set the stop loss at 10% lower than the current share price 92.25 USD i wanted to know how this would kindly work please. For instance say if there was a sudden drop over an hour on some bad news from 102.50 USD to 82.50 USD how can i determine how close i would get to my stop loss of 92.25 USD please? Would this be quite tight so no matter how sudden the drop, this should trigger around the 92.25 USD mark please? If anyone could kindly help me with this it would mean the world to me and i would be forever grateful for your support.

Hope you continue to do extremely well with your trading and investing. Thank you to everyone who is an amazing asset to these wonderful forums. All the very best to you.

 

[tech/a]

You could consider a Stop Limit order
but like all stops if the liquidity isn’t there
you have no guarantee you’ll be filled.

have a Google around.

 

[qldfrog]

Hello you wonderful and kind people that make up this forum. Hope you are doing well and enjoying your weekend.

I wanted to kindly ask regarding how tight stop losses are at triggering please. For instance as an example if i invested in Walt Disney (NYSE: DIS). The current price is around 102.50 USD. If i set the stop loss at 10% lower than the current share price 92.25 USD i wanted to know how this would kindly work please. For instance say if there was a sudden drop over an hour on some bad news from 102.50 USD to 82.50 USD how can i determine how close i would get to my stop loss of 92.25 USD please? Would this be quite tight so no matter how sudden the drop, this should trigger around the 92.25 USD mark please? If anyone could kindly help me with this it would mean the world to me and i would be forever grateful for your support.

Hope you continue to do extremely well with your trading and investing. Thank you to everyone who is an amazing asset to these wonderful forums. All the very best to you.

If you deal with high liquidity stock,
And the fall happens during the session
And is not linked to a whole market debacle..you have a good chance to get out as expected...
But that is just good chance, no guarantee..if Walt Disney gets a catastrophic news..a bombing, a non woke announcement ;-), or movies catastrophic box office figures etc, there are high chances this happens outside market hours, and the gap at open will be big enough to fall past your SL.
I found SL usually work, especially the ones on the US market i traded with saxo..but do not expect these to save you when sxxt hits the fan.
If available, add an alert or notification so that you can manually overwrite the sell price after SL gets triggered.
Remember also that there is heavy market manipulation to trigger SL by shaking the price for a few units, buy the resulting SL at a discount then go back to market as usual.
Some SL settings allow you to define a minimal number of stocks exchanged before triggering...
Hope it helps.
I found SL a useful tool working..in most situations but not when it is desperately needed

 

[InsvestoBoy]

Hello you wonderful and kind people that make up this forum. Hope you are doing well and enjoying your weekend.

I wanted to kindly ask regarding how tight stop losses are at triggering please. For instance as an example if i invested in Walt Disney (NYSE: DIS). The current price is around 102.50 USD. If i set the stop loss at 10% lower than the current share price 92.25 USD i wanted to know how this would kindly work please. For instance say if there was a sudden drop over an hour on some bad news from 102.50 USD to 82.50 USD how can i determine how close i would get to my stop loss of 92.25 USD please? Would this be quite tight so no matter how sudden the drop, this should trigger around the 92.25 USD mark please? If anyone could kindly help me with this it would mean the world to me and i would be forever grateful for your support.

Hope you continue to do extremely well with your trading and investing. Thank you to everyone who is an amazing asset to these wonderful forums. All the very best to you.

Unless you are trading using Guaranteed Stop Loss at a CFD broker (not recommended) or using options to hedge your risk upfront (maybe but you have to pay the premium upfront and ongoing so probably not), there is no guarantee at what price a stop loss order would be executed at.

You can consider a stop loss as simply an instruction to your broker "if the price moves below X, try to get me out as soon as you can, at any available price".

If there's someone willing to buy what you have instructed your broker to sell at or near your stoploss price, which is usually the case when market conditions are "normal" and liquidity is abundant, you can expect your stoploss to get you out at the price you set or near to it.

In abnormal conditions where liquidity has been withdrawn, you should expect significant slippage on stoplosses and for your stop to be executed at whatever price finds someone willing to buy what you have instructed your broker to sell.