Another rookie question from yours truly, a three-parter after I just took the 2 dumbest losses in my very short trading career this week alone, I finally realize that I need a stop loss system that I just make ironclad and execute automatically. So for day trading, I'm wondering the following:
1) is there a golden percentage people tend to use to avoid getting stopped out on minor pull backs? My hunch is to go with 1% for awhile and see how that goes, but if there's a smarter % percentage, I'm open to suggestion.
2) Should the stop loss vary by stock price? With a 1% rule, a $20 stock could stop you out way more frequently than say a $50 or $100 stock.
3) On trailing stops, do you guys shrink them on the way up or keep them uniform? My rookie sense is the longer you've gone up the tighter you should make the stop.
Sorry, I know these are very elementary questions, but hopefully conceptually interesting to hear your thoughts. Thanks!
