Just a few quick newb questions... Can you put a stop loss at the same time of a buy or short order or can you only make one after you own the stock? What happens if you make 2 stop losses for the same stock would the highest one automatically get cancelled? Does it mess with your buying power? I know when I make limit orders that do not go thru this happens until I cancel it.
That's kind of a semantic question. So... you want to "buy XYZ @ $100 with a stop at $95". Can you have a stop on an issue which you do not yet own? That is... in the process of "buying + placing stop order", can the stop get executed before the buy? IOW.... as soon as your buy is confirmed, you can order the stop. If you care to be so quick, we're talking seconds here... and of no material consequence.
I always put a stop loss order before issuing a buy trigger. However, if I do it twice, my broker/exchange may trigger an erroneous short-order on the second one, despite no agreement for short-selling. This is more a question for your broker. If you have short-selling agreement, your sell-trigger might translate into shorting due to moronic user interfaces and APIs. Also beware that if your sell-trigger is triggered before buy, it may either activate shorting or be removed/disabled.
As a daytrader I wanna be as quick as possible... Atm, my broker doesn't even allow stop losses so these questions are in anticipation of an new broker.
Wait, not sure I am getting you right? So you can put a stop loss order without having any shares of the stock?
what is a rush? if u day-trade do not put any stop-loss orders - have a mental stop and execute it when price is there if you playing longer term - put a stop after you bought(short) the stock
Stop loss/stop orders aren't related to other orders, you don't have to own anything. This is how entering at a stop works. You can enter as many orders whenever you want.
I prefer stop losses since my strategy requires tight stops where I am in multiply positions. If it moves away from my expectation I get out immediately for a small loss. Saves me a lot of time maintaining them.
You need to put those questions to a broker, as they often have differing approaches and order-entry systems. Most brokers will permit you to enter a stop at the same time you are preparing an opening order, even if the opening order is not yet filled. The stop will activate and show up on their system when the opening order is filled, but will not be active in the system if the opening order is not filled.
Ok thanks... Would be nice to find a broker that allows that. Would save me a lot of time! Edit: Just took a look into this broker I am gonna use seems to have a leg up when it comes to making multiply different orders in one. Conditional orders allows traders to place an order and then if that order executes, place a new and separate order. Range orders can be used here to provide a third condition. Example: If GS gets to $200 a share but it, then put a limit to sell it at 205 and a stop loss at 195. If my limit or stop executes, cancel the other side. Although, it's still confusing how it works exactly. Gonna have to try their demo.