I don’t think it’s a good enough strategy. Stop-limit order does guarantee a price limit but you won’t be able to trade. Imagine not being able to place the order before the market price drops because of the limit price. How many times can you afford to lose?
Are there more risks with indices?
- Thread starter MarkDawn
- Start date
Dunno. I don't think it's one we really need. It's just a choice.
Perhaps when the stock is volatile with considerable price movement, the price guarantee does come in handy.
For diversification perhaps!?
Whatever you guys say, I think considering where to place either of these two is important. Technical analysis here can prove helpful. So, always select brokers who have a good range of technical tools. I started trading with fxview, pepperstone, and xtb and after due deliberation, I’m sticking to fxview and xtb.
Even with stop loss, if you place it too close to the current market price, a small retracement in the price can stop you. I lost a good deal of trades because I didn’t realize when the prices started to rise again.
Not even that, I don't think. For someone to choose the equal weighted, he must be thinking the SPY/equivalent is too heavily represented by the top 50 companies. That should be enough diversification for anybody.
I don’t know I get so confused sometimes between market and equal weighted funds, how does one outperform the other!?
If one group has more of the stocks that are doing better, it will outperform. That's most portfolio manager's objective.
From what I’ve heard (someone told me last evening), equal weighted funds are more prone to losses. You think that’s true? Sorry I’m throwing so many questions at you
