Yeah that makes a lot of sense. I think I'm gonna try 1.25% for awhile with my larger moves, and then more like 2% if I'm doing a smaller move on a more volatile stock. But I'll start comparing this to standard deviations and look into using ATR too, been meaning to work on that anyway, thanks for the suggestions!
Stop Losses 101
- Thread starter Dollardogs
- Start date
I am not sure you do "get it". No offense intended.
The point is not only do the amounts you set need to be tested for your tactics, the execution of the stop needs to be verified. Not all stops work the same way and the same under different instruments or conditions. This is the type of stuff Lind is referring to.
Try to use an adjustable trailing stop. How does it work during RTH. How about after hours. On a stock, or a future. Different routing? Native or simulated stops? How about a pegged trailing stop? What you read about and how it actually works are two different things. This is what paper is good for.
DDog, what did you do with this situation?Do you mean how many positions am I doing per day? Usually no more than 1 or 2. I watch about 12 companies premarket. I still really struggle to have a good sense of entry/exit points still, so I'm heavily reliant on EMA crossovers for that. Also still pretty hopeless at scanning for stocks, so I've been relying on a pretty good and cheap tip service I found to help with that.
Here's my war room: EMA crossovers, RSI, and bid vs ask volume, I slap the OBV on there too but it's more to try to learn it, also tried having other indicators but I couldn't process stuff anywhere near quick enough to even get to them (Momentum, MACD) so I'm streamlining things now.
What will you do assuming you met this situation next Wednesday?
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I didn't make any moves on that particular chart, but the way I'm reading that kind of situation at this point is wait for the 9EMA (purple) to bottom out and cross back over. Once it does, if the first two candles are bullish and the RSI isn't severely overbought and the volume isn't flagging, that would be a buy signal to me. It's been very reliable so far but I know there's a lot going on in those signals I don't grasp yet. One step at a time.
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This chart initiates a move down on the left side of the chart.
In the luxury of hindsight, ...
Not sure I follow what you're hinting at, easymon?
Do you ever go short?
How do I read the candles accurately if you flip the chart upside down? Three white soldiers trending downward on the left lol??
I did my very first short last week, pretty brutal debut, shorted NVDA based on what I thought I understood in the technicals when the news broke of the chip shortage. Not exactly a lucky day to try it out. That's one of the 3 clusters from last couple weeks I was referring to earlier. But I'm not averse to trying it again.
Part of my motivation here in asking about stop losses is not only knowing when to cut my losses but also knowing when to reverse a position from long to short or vice versa.