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what kind of stops do others use?


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#1 traderx

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Posted 02 June 2020 - 08:54 AM

I have been trading since 1963, and was on this board in AOL days. I am familiar with all types of stops, but am curious as to what others use here?



#2 12SPX

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Posted 02 June 2020 - 09:17 AM

Sold options have more to do with time but my day trading is generally always profit stops.  I'll generally add to my original trade if it goes against me.  As I like to say, the market never goes up forever and it never goes down forever no matter what time frame but the key is when you place the original trade.  Currently its in a never goes down trend overall but that'll change and I'm still making my money on shorts anyhow as I catch the intraday highs as I wait for a decent correction to start, the markets looking tired and has moved to far to fast this expiration cycle.  Btw when I say that I'm only looking for around -2%!   



#3 pdx5

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Posted 02 June 2020 - 05:02 PM

Stops have never worked for me. I would get sold out at the stop price only to see the stock close higher.

It gave me the impression the floor trader was selling me out at the lower price to make money for a buyer or herself.


"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#4 Rich C

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Posted 02 June 2020 - 10:49 PM

I don't use stops on individual stocks, I think they can be manipulated too easily by the pros, and they can take your stock.

 

I use "trailing stop loss %" orders under an index, like SPY.  Much harder to manipulate a whole index than an individual stock. 

 

Setting the trailing % is more art than science.  After a hard selloff, I would go with a larger trail %, thinking the probability of another big selloff is nil.  After the market has moved up a lot, I go with a tighter trail %, since the odds of a correction increase.


Blogging at http://RichInvesting.wordpress.com

 

My swing trades typically last a couple of weeks to a couple of months. 


#5 slupert

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Posted 03 June 2020 - 06:34 AM

I use hard stops and stop out all the time, and I'm going to continue to do it that way.