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What stop-limit do ya'll typically use?

Posted on 4/8/15 at 10:55 pm
Posted by fasdit
Member since Mar 2011
35 posts
Posted on 4/8/15 at 10:55 pm
First of all I realize the answer will vary depending on numerous variables such as company fundamentals, volatility, holding period, number of shares, etc.

I am searching for recommendations on unacceptable percentage of loss for a tech stock with a planned holding period of 1 - 3 years.

For example: If I purchased tech stock WASD for $50 a share, at what share price should I cut my losses if the price goes down?

And really, if anyone has general "rules of thumb" they go by that would be helpful.
This post was edited on 4/8/15 at 10:56 pm
Posted by ODoyleRulez
Member since Apr 2011
961 posts
Posted on 4/9/15 at 12:11 am to
Tons of variables on this imo....what is the holding compared to you portfolio? What is the holding compared to the specific sector overall? What's your age and pain threshold? You can't just blanket a 10% stop loss rule of thumb on stocks...especially for volatile positions. I would look at a lot of things but one in particular is "at what price would I have not bought this stock". You have to take as much emotion as possible out. If it's a volatile stock in a sector that all indications should do well in the current conditions, and you really like that specific etf/company then you could look to buy more at the lower prices instead of getting out...obviously that's dependant on a lot. you could just protect the position with a put option..ladder it if need be.
When is the juice not worth the squeeze to you? That's you stop loss.
Posted by bayoubengals88
LA
Member since Sep 2007
19228 posts
Posted on 4/9/15 at 5:43 am to
I've read many say that they will take 30% gains and sell at a 20% loss.

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