I agree, people/traders shouldn't use Stop loss orders -- but instead...have a somewhat greater viewpoint of the market I kind of equate automatic stop orders....as ...a cat walking, and getting spooked by something ...and running away. (horrible analogy, i know)
Agreed. I trade only long options when holding overnight. Unlimited upside, but limited downside. A built in stop. Last night I was long VXX calls. Why? My gut told me that with the strong undercurrent in outer counties leaving toward Leave, and the shooting in Germany playing into that, the odds might favor a Leave result. Options were the way to play it for max profits. But if I was wrong, which was certainly a possibility, I was willing to take a calculated and known loss without concern for stops getting blown out.
Agreed as well. I also used long options. In this case, the SPY 207 puts. The S&P was over 2,100, and buying there has been fool's gold. The market will always find a way to inflict pain on those who hold margin overnight. The risk/reward was skewed towards the downside move, so betting for a down move with fixed risk worked. The risk was a break of the all time high of 2,134. Of course, anything can happen, and you're right, it's a calculated loss. All the SPY did was gap down to the 100 day sma. There was a pivot low at 202.78, which held. The gap down was just too large, and the buyers stepped in, at least for now. But a word of caution, a lot of traders on these boards will say MA levels don't work, lol!
Stops on futures worked with no slippage even some of my market kill orders since futures are open all night long. Obviously over night stock stops would not have worked since price as shown by futures was going down all night long. So when stocks open for trading if you had a stop it would have been filled at whatever price the actual stock was when the market was open. If you don't understand that then don't hold stocks overnight.