putting stop losses on a trade

Discussion in 'Strategy Development' started by ksonsinc, Aug 28, 2005.

  1. hello ET pll
    Can you please tell me how do you put a stop loss on a trade and to what margin
    Example if Intc was trading at 26 and i put in a limint order to buy at 26 i get filled do i put in an another order right away to sell at 25.90 limit or what do your.ll do - ?????????????
    please give me your feedback
    thank you
     
  2. Most platforms let you bracket your orders, like in your example when the buy at 26 occurs, a sell at 25.90 would automatically be put in, as well as a profit target. Ten cents is a pretty tight stop, IMO.

    Don-
     
  3. Imho 10c stp on INTC is not so tight considering the stock usually doesn't move much more than 1% in a day.
     
  4. thank a lot for your reply
    do all the software do it as i will be joing a prop firm preety sooon so i will check with their platform
    thank you
     
  5. Whimsy

    Whimsy Guest



    H'mmm...

    If INTC's daily range is 1% then: $26.00 times 1% (.01) = $0.26. Seems to me that's a rather tight stop.
     
  6. nassau

    nassau

    If you are only trading during the day then in my opinion you should not use stop losses. You can preset but not execute until the trade is at your desired exit or loss. Putting in a stop loss shows your level of commitment to your trade and it will be picked up by the computers. A manual stoploss at X no. of cents is also not a fair evaluation of the trade as cents are just math and a stocks movement is based upon many things beta being just one of them.

    You might be better to have options and then play the stock in between for additional security. You would be hedged and this would also allow you an opportunity to not necessary exit prematurely on the trade.

    w