I’m not denying the importance here but let’s not forget that even a short-term fluctuation in your stock’s price could easily activate the stop price.
Buddy the key in this case is to pick up a stop-loss percentage that helps your stock to fluctuate daily. This alongside preventing the downside risk involved.
Exactly. What traders don’t understand is that setting a 5% stop-loss order on a stock that comes with a history of nearly or more than 10% a week fluctuations won’t be one of the best strategies. Leave aside making money; you'd rather end up losing money on the commissions from executing the stop-loss order
Thanks for that brilliant hindsight analysis. I mean seriously, thank the daylights out of you for that BEAUTIFUL AND PRESCIENT CALL, AFTER THE NQ HAS ALREADY DROPPED 10% You are, seriously, the MASTER of all things finance. Now have a steaming hearty cup of STFU.
You’re right here Morkel. In fact I’ve been able to make better trading decisions (keeping my emotions at bay) with stop-loss order. I just love stocks and many more traders would feel the same, but won’t deny that it does create an allusion that it’ll come around if we stick to the failing ones for a little more while. When in reality, the delay just results in us losing up on money.
Did anyone try the stop loss limit order? I find it way better than the stop loss order. Unlike the latter, with fxview, swissquote I could place the stop loss limit order at the stop loss price. This helped me get rid of the slippage problem.
The SP 500 is a "cap-weighted index", so of course it's skewed towards the largest companies (there are ETFs which are "equal weighted", if one wants that). No real faults to either. Anyone can find more "concentration/specialization/leverage" as they wish.
Well @Mark I hardly think there’s any difference between these two except for the fact that there’s a limit on the price at which they’ll execute.