ETF Trends Forum » ETF Forum

Do You Have a Stop Loss?

(5 posts)

  1. Tom
    Member

    What does it take for you to sell your positions? Do you have a firm stop-loss in place, or do you just follow your gut?

    Posted 7 months ago #

  2. coloneldebugger
    Member

    I typically set a stop loss for trades I consider to be short term. I used to set them at 8% as I learned from here, but too many times for my liking my stop tripped on an intraday low and the stock/etf ran up afterward. Now I use 10%.

    Posted 7 months ago #

  3. clebeau2
    Member

    There is no correct percentage number for setting trailing stops. Much like shoe sizes you can not squeeze all stocks into the same size stop. Effective trailing stops need to take into account the current volatility and current direction of each stock and calculate the exit appropriately. The correct stop is not likely to be 8% or 10%.

    For an example of stops that are calculated in this recommended method go to www.SmartStops.net and check a few stocks (its free).

    Posted 6 months ago #

  4. Donato
    Member

    When you first open your position, on a chart where each bar represents one day, do not give up more than two bars. Once you are in the money and have some breathing room, you can be more discretionary.

    Posted 6 months ago #

  5. roughbert
    Member

    Another way is to use the daily pivot point calculation and set the stop to catch a penetration of the Support1 or Support2 levels.

    Posted 1 month ago #

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