Stop Loss/Limit Orders | TigerDroppings.com

Posted byMessage
Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9937 posts

Stop Loss/Limit Orders


Who all uses these ? Can you provide some details on your strategies? Do you only use them on heavily traded stocks ?






Back to top
Share:
wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7695 posts

re: Stop Loss/Limit Orders


When I did stocks I'd put in a trailing stop loss that would sell any time the stock dropped by 10% below the purchase price. If the stock increased in value I'd keep bumping up the stop loss at 10% below the highest value the stock had risen to and take my profits when the stock value fell. My mistake early on was not taking into consideration some stocks day to day volatility in which case swings of 10% could result in buying and selling literally within a few hours on the same day. In such cases you will be getting hosed on transaction fees.


This post was edited on 5/22 at 10:15 am


Back to top
homeskillet
Alabama Fan
Huntsville, AL
Member since Dec 2011
225 posts

re: Stop Loss/Limit Orders


So how do you determine the right percentage? Is a higher or lower percentage appropriate based on your investing strategy or the volatility? Or is it more closely related to your risk tolerance?





Back to top
  Replies (0)
wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: Stop Loss/Limit Orders


Do they work after hours?





Back to top
LSU0358
LSU Fan
Member since Jan 2005
5155 posts

re: Stop Loss/Limit Orders


quote:

Do they work after hours?


Not for stocks. They will for futures, currencies, etc.






Back to top
fishfighter
LSU Fan
Baton Rouge
Member since Apr 2008
18505 posts

re: Stop Loss/Limit Orders


I used to use stop loss when I was holding a stock for long. Would move that point up as it increased in value, keeping an eye on it all the time.

Limit orders I use to buy or sell all the time. Never use at market buy or sell.






Back to top
Ace Midnight
LSU Fan
Ball, LA - Home, Sweet Home
Member since Dec 2006
29950 posts

re: Stop Loss/Limit Orders


quote:

Limit orders I use to buy or sell all the time. Never use at market buy or sell.


I'm slowly figuring that out as well - even on large caps with stable prices.

Eventually, I'll learn.






Back to top
  Replies (0)
Fred439
LSU Fan
Houston
Member since Aug 2011
42 posts

re: Stop Loss/Limit Orders


True story. Several years ago I bought 300 shares of Apple at $15/share. Gradually over 6 months it climbed to $22 or 23 a share. One day it dropped a coouple of points, and worried that I might lose my profit, I called in a stop loss at $20/share. Next day it dropped to $19 and a fraction for a vey short time. Poof there went my 300 shares of Apple. It never hit $20 again and you know the rest of the story. Use this to decide if stop losses are good for you.





Back to top
TheCaterpillar
LSU Fan
Nashville from BR via Oxford
Member since Jan 2004
36137 posts

re: Stop Loss/Limit Orders


quote:

True story. Several years ago I bought 300 shares of Apple at $15/share. Gradually over 6 months it climbed to $22 or 23 a share. One day it dropped a coouple of points, and worried that I might lose my profit, I called in a stop loss at $20/share. Next day it dropped to $19 and a fraction for a vey short time. Poof there went my 300 shares of Apple. It never hit $20 again and you know the rest of the story. Use this to decide if stop losses are good for you.
:lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol: :lol:






Back to top
  Replies (0)
ell_13
USA Fan
Alex Box
Member since Apr 2013
22713 posts

re: Stop Loss/Limit Orders


Wow. Could have turned 4500 into 210,000. Just wow.





Back to top
  Replies (0)
AUtigR24
Auburn Fan
Happy Hour
Member since Apr 2011
10768 posts

re: Stop Loss/Limit Orders


quote:

Never use at market buy or sell.


This ^






Back to top
  Replies (0)
homeskillet
Alabama Fan
Huntsville, AL
Member since Dec 2011
225 posts

re: Stop Loss/Limit Orders


quote:

True story. Several years ago I bought 300 shares of Apple at $15/share. Gradually over 6 months it climbed to $22 or 23 a share. One day it dropped a coouple of points, and worried that I might lose my profit, I called in a stop loss at $20/share. Next day it dropped to $19 and a fraction for a vey short time. Poof there went my 300 shares of Apple. It never hit $20 again and you know the rest of the story. Use this to decide if stop losses are good for you.


The opposite is I bought 106 AAPL at 372. A 10% trailing stop loss would have had me sell at 630 for a roughly 27k gain. I still have the shares at today's price, holding a neat 7k or so gain.







Back to top
  Replies (0)
Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
15739 posts

re: Stop Loss/Limit Orders


yep. I use them on stocks and futures contracts.





Back to top
  Replies (0)
Bonjourno
LSU Fan
New Orleans
Member since Jan 2010
1950 posts

re: Stop Loss/Limit Orders


I had a stop on quote sell at 16.0 the other day which executed at 16.12 or something like that. The stock did not hit the 16.0 mark at all. Why did it execute above the stop quote?





Back to top
  Replies (0)


Back to top