Stop orders

[KGTrader4]

You buy a stock, etf, whatever, and put in a stop order, say, 7% below your entry point.
Few days later, Stock closes 5% below, and the next morning it looks like it’s gonna gap down at the open, and you’ll be stopped out with a 10% loss. Do you keep the stop on?

I know, if you read HTMMIS, O’Neill tells you, keep a hard stop on, no flexibility, no stop limits. My reason for wondering about this, is we all know what happens the first half hour of trading, everything that’s volatile overshoots where it will trade most of the day. I think someone here referred to it as “Amateur Hour”

thoughts?

 

[deaddog]

If you knew what the price was going to do next you would be able to answer that question. The object of having a stop is to protect your capital. If you don't take it you are not protecting your capital.

 

[lindq]

You buy a stock, etf, whatever, and put in a stop order, say, 7% below your entry point.
Few days later, Stock closes 5% below, and the next morning it looks like it’s gonna gap down at the open, and you’ll be stopped out with a 10% loss. Do you keep the stop on?

I know, if you read HTMMIS, O’Neill tells you, keep a hard stop on, no flexibility, no stop limits. My reason for wondering about this, is we all know what happens the first half hour of trading, everything that’s volatile overshoots where it will trade most of the day. I think someone here referred to it as “Amateur Hour”

thoughts?

Stop Losses or Stop Signs. You can choose to ignore them even once, and suffer catastrophic consequences.

Is it worth it? Nope.

 

[murray t turtle]

You buy a stock, etf, whatever, and put in a stop order, say, 7% below your entry point.
Few days later, Stock closes 5% below, and the next morning it looks like it’s gonna gap down at the open, and you’ll be stopped out with a 10% loss. Do you keep the stop on?

I know, if you read HTMMIS, O’Neill tells you, keep a hard stop on, no flexibility, no stop limits. My reason for wondering about this, is we all know what happens the first half hour of trading, everything that’s volatile overshoots where it will trade most of the day. I think someone here referred to it as “Amateur Hour”

thoughts?

%%
Good question;
but [IBD founder ]stop suggestions were 7-8% max, or less than 7-8%.
On single stock i sized it like it could gap 50% against me\ never did\ but it could,on single stocks.
And he ,with a NYSE seat, sold quite frequently. Interesting, KGtrader, he never,NEVER put open price on ANY of his charts, so word to wise
BUT frankly as small as the uptrends have been in FEB,on that example, may get out @5% , which actually is within his limits for sure,i've read his books many many times.
So, also on a 7% stop loss /he wants you make 28%or more ; 8% =32%.So good news for you, 5% exit fine in a FEB market like this.
[Even though in a good trend in TQQQ/ which swings 10%/+ a day, no way would i want a 5% stop all time /this week . TQQQ only did 2.9% for the whole week.]
Good place for a planned ,standing order,exit, on some opens. Hope this helps.

 

[smallfil]

You buy a stock, etf, whatever, and put in a stop order, say, 7% below your entry point.
Few days later, Stock closes 5% below, and the next morning it looks like it’s gonna gap down at the open, and you’ll be stopped out with a 10% loss. Do you keep the stop on?

I know, if you read HTMMIS, O’Neill tells you, keep a hard stop on, no flexibility, no stop limits. My reason for wondering about this, is we all know what happens the first half hour of trading, everything that’s volatile overshoots where it will trade most of the day. I think someone here referred to it as “Amateur Hour”

thoughts?

You keep the hard stop loss in because if you don't you will be encouraged to move your stop loss lower to avoid being stopped out. The problem is you get stopped out and now, have a larger loss? Traders need discipline to be successful in the Stockmarket. Losing a small amount is part of the game. Large losses should be avoided like the plague.

 

[SunTrader]

I'm with deaddog and linq buuuut I'd like to know what determines 7% stop loss percentage? O'Neill blanket suggestion for all trades?

 

[deaddog]

I'm with deaddog and linq buuuut I'd like to know what determines 7% stop loss percentage? O'Neill blanket suggestion for all trades?

With O'Neil it's 7% below you entry price.

 

[KGTrader4]

Thanks for the comments, it validates my thinking. Got stopped out today on SOYB, but had the stop at 5% below entry point, purposely had a super tight stop.

had another, CORN, that didn’t hit my original stop but I had moved my stopped as the stock rose, ultimately sold for a small loss before it hit my stop.
I’m just playing right now. Call it trial and error (the trial and error part will continue probably forever
Once I have a written set of rules, I will actively look for setups, and focus on position size, risk management, risk reward, etc, and formally track my progress (or lack of)
I don’t expect it to be easy.

 

[easymon1]

Stop Losses or Stop Signs. You can choose to ignore them even once, and suffer catastrophic consequences.

Stop Losses or Stop Signs. You can choose to ignore them even once, and suffer catastrophic consequences.
Stop Signs. Sure, ya can ignore em. How many have we all blown through down through the years?

 

[deaddog]

Here is why you hate to take stop orders:

And here is why you should: