Stop Losses 101

[KCalhoun]

I would personally never risk huge 1-2% on a trade. For swingtrading I often close half or more shares if price drops under prior day's low, or 1atr range. I add shares if price closes in my favor above prior days high.

 

[Dollardogs]

I would personally never risk huge 1-2% on a trade. For swingtrading I often close half or more shares if price drops under prior day's low, or 1atr range. I add shares if price closes in my favor above prior days high.

Hm, I'll look into that. That's another thing I haven't tried to figure out yet, reducing or increasing positions. I tend to just open a position then close it, then reassess.

 

[easymon1]

I would personally never risk huge 1-2% on a trade.

KC, how do you computer the "1-2%" that you mention? What numbers do you do the math with, Entry and Stop prices?
Also important is % of Acct Value plowed into a particular stock or trade. What is your benchmark in these quarters? Thanks

 

[Dollardogs]

Well after the EMA has crossed over, I'd buy during the second green candle, say around 130.3. That's been my bread and butter so far. Knowing me, after that short upswing, I'd sell during the second red candle when it comes down to about 130.6, mainly because I don't like what I'm seeing in the volume and the RSI don't disagree. As for the stop placement, I have no idea yet, hence this whole thread.

And I think I get that the three bullish candles before the EMA crossover would be an earlier and more profitable signal but anytime I veer off the EMA crossover, my results are much worse.

 

[Dollardogs]

If I’m understanding right the red line is my stop loss

 

[easymon1]

In retrospect, using bars on the Left 2/3 of the chart,
and in consideration of the Downmove that lasted until the end of day,
Using Your current tools,

Can you find a way to get into that move to the downside?

What's a possible stop loss area

 

[Dollardogs]

Green arrow is where I’d short and redline is stop loss at previous high to avoid any chance of higher highs

 

[easymon1]

Green arrow is where I’d short and redline is stop loss at previous high to avoid any chance of higher highs

What would a written rule for that look like?

 

[Dollardogs]

What would a written rule for that look like?

Tell me if I’m right first! Proportionally it’s not close to the 1.25% rule of thumb I was pitching earlier but situationally seems wise because if it breaks that level it’s broken resistance right?

 

[easymon1]

Tell me if I’m right first! Proportionally it’s not close to the 1.25% rule of thumb I was pitching earlier but situationally seems wise because if it breaks that level it’s broken resistance right?

In hindsight, that stop Would Have Worked. Your Stats will prove or disprove the veracity of that method using data from 100 examples. Starting with Ten is how that's done. Add ten more, and before you know it....
Most use a spreadsheet for that. You might save screenshots to accompany your examples going forward, especially for situations that Do Not Work. Reasons may emerge based on groups of examples of working vs not working.
Now...
Back to the entry.
What would a written rule for that That ENTRY look like? lol