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Question from new guy in the stock market on Stop-loss or stop-limit??
Posted on 12/18/20 at 6:08 am
Posted on 12/18/20 at 6:08 am
Please be nice i'm just asking some of the stock veterans on here. i have some nice gains so far this year and have no stop-loss/limit on any of the stocks i own. Would it be a good idea to put one of these on each just in case something bad would happen to the market. I know stocks by nature go up and down and over time. the good ones go up. What would be a good point? and which do i use? For example: i bought 100 shares of company A at @100 now the stock is at 200@ share. Would you put a stoploss/limit somewhere in the middle? Now for my question Say something bad happens to company A and i have my stoploss/limit at 150. The stock tanks overnight goes from 200 @ share to 100. Which should i have in place Stop-loss or stop-limit? which will get me out with or near the 150 i set?
This post was edited on 12/18/20 at 6:09 am
5
Posted on 12/18/20 at 6:13 am to FLObserver
I’m under the impression that most people that put in stop losses are short term or day traders or those in considered riskier stocks. Time in the market is usually stronger than timing the market. Unless you need the money or have a bad feeling about your stocks, I don’t see a reason to pull. I’m an amateur so take this with a grain of salt and others will also chime in 
Posted on 12/18/20 at 6:29 am to FLObserver
I am an amateur also but the way I understand it the stop/loss triggers a sell once the limit is reached and if it drops from from 200 close to 100 open it would sell at 100 if you stop was set at 150. I believe the stop limit would not sell unless the price goes back up to 150. I normally sell some of my shares to lock in some profit if I have large gains. Buy good companies and you should be protected for the most part.
Posted on 12/18/20 at 7:18 am to FLObserver
Many stocks will move as much as 50% up and down in a given year.
Why did you buy the stock?
If those reasons are intact, there is no need to sell.
If those reasons have changed decide what it is worth and set a price.
Guessing the top and bottom of a stock is basically impossible.
Why did you buy the stock?
If those reasons are intact, there is no need to sell.
If those reasons have changed decide what it is worth and set a price.
Guessing the top and bottom of a stock is basically impossible.
Posted on 12/18/20 at 7:41 am to FLObserver
Stop loss will trigger a sale at the market price whenever you hit the stop price set.
A stop limit is similar, you have a stop price which will trigger the limit sale at whatever price you set.
The only difference really is that if a stock is truly in freefall your limit order may not get filled whereas a market order will granted maybe not at the exact price you want.
As far your specific question its hard to say, you would first have to be setup to trade after hours. Market and pricing works differently AH. Your best bet for a guaranteed fill is a stop loss
A stop limit is similar, you have a stop price which will trigger the limit sale at whatever price you set.
The only difference really is that if a stock is truly in freefall your limit order may not get filled whereas a market order will granted maybe not at the exact price you want.
As far your specific question its hard to say, you would first have to be setup to trade after hours. Market and pricing works differently AH. Your best bet for a guaranteed fill is a stop loss
Posted on 12/18/20 at 8:19 am to hiltacular
I like to use the a trailing stop % because I'm trading. It allows that stock to ride the lift or rocket to its peak and automatically bail if it starts to drop more than x percent.
I only use it for a stock that has gains a good bit greater than the trailing stop percentage. Otherwise, it can trigger and bake in a loss.
I only use it for a stock that has gains a good bit greater than the trailing stop percentage. Otherwise, it can trigger and bake in a loss.
Posted on 12/18/20 at 12:32 pm to FLObserver
I did one on eTrade for APA if it dropped to $6. Never happened. I bought in at a little lower than that and it had been sinking, but it rebounded.
Stop loss just means sell if it drops to $X. Sometimes you want to cash in if it rises to a certain amount.
Main reason to do either is to set it and forget it, instead of watching constantly and reacting.
Stop loss just means sell if it drops to $X. Sometimes you want to cash in if it rises to a certain amount.
Main reason to do either is to set it and forget it, instead of watching constantly and reacting.
Posted on 12/18/20 at 12:33 pm to Auburn1968
Thanks guys was really looking to see if anyone was using these on their stocks currently.
Posted on 12/18/20 at 1:12 pm to FLObserver
Keep in mind if you want to hold it long term? I'll use Tesla for example, its been extremely volatile and many people are short term trading it. If you are holding it long term, why sell it? If its a market issue all stocks will drop right? If its a company issue you'll likely know and be paying attention.
Yes stocks can drop dramatically, but in reality they rarely do. Furthermore, they rarely drop and stay there. Anything can happen, but don't over think a situation.
Yes stocks can drop dramatically, but in reality they rarely do. Furthermore, they rarely drop and stay there. Anything can happen, but don't over think a situation.
Posted on 12/18/20 at 1:16 pm to baldona
I’ll add that “stop raiding” is a real thing and it can definitely cause you to lose shares you probably didn’t really want to sale at the time. Market makers will go fishing from time to time and take out your order to get the shares for cheap only to push the stock right back up.
I agree with earlier sentiment that a stop order isn’t really needed if it’s a long term hold. Just my two cents. Especially an order as you say in your example that may be 50% below current price.
I agree with earlier sentiment that a stop order isn’t really needed if it’s a long term hold. Just my two cents. Especially an order as you say in your example that may be 50% below current price.
Posted on 12/18/20 at 2:30 pm to FLObserver
The best way I describe Stop & Limit Orders:
Limit Orders
Limit Buy (Offensive Entrance Strategy)- If I'm cash & waiting for the price to go down to a certain point or lower to buy in.
Limit Sell (Offensive Exit Strategy) - If I'm shares & waiting for the price to go up to a certain point or higher to sell.
Stop Quotes
Stop Buy (Defensive Entrance Strategy) - If I'm cash & waiting for a certain point higher to buy in.
Stop Sell (Defensive Exit Strategy) - If I'm shares & waiting for a certain point lower to sell at to protect against loss/lock in gains.
Limit Orders
Limit Buy (Offensive Entrance Strategy)- If I'm cash & waiting for the price to go down to a certain point or lower to buy in.
Limit Sell (Offensive Exit Strategy) - If I'm shares & waiting for the price to go up to a certain point or higher to sell.
Stop Quotes
Stop Buy (Defensive Entrance Strategy) - If I'm cash & waiting for a certain point higher to buy in.
Stop Sell (Defensive Exit Strategy) - If I'm shares & waiting for a certain point lower to sell at to protect against loss/lock in gains.
Posted on 12/18/20 at 2:39 pm to PillPusher
quote:
I’ll add that “stop raiding” is a real thing and it can definitely cause you to lose shares you probably didn’t really want to sale at the time. Market makers will go fishing from time to time and take out your order to get the shares for cheap only to push the stock right back up.
^^^^^^^^^^^ this
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