All stops effective only when stock closes below stop price
Started by
calmcookie
, Jun 08 2007 08:24 AM
4 replies to this topic
#1
calmcookie
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calmcookie
Posted 08 June 2007 - 08:24 AM
Just curious (not trading right now) ... but HOW does one place a stop loss that is effective, as Hirsch says "only if the stock closed below the stop loss price." I have never seen that as an online option. Comments welcome.
C.C.
#2
traderpaul
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Posted 08 June 2007 - 10:07 AM
There is no effective way to place a stop.....Everyone will place the stop below a support.....Ond day the price was 1 cent above my stop....I was happy.....Next day....Big gap down.....Blew my stop by a county mile.......Now, no stops.....Just sell them on the way up.....Just curious (not trading right now) ... but HOW does one place a stop loss that is effective, as Hirsch says "only if the stock closed below the stop loss price." I have never seen that as an online option. Comments welcome.
C.C.
"Inflation is taking place now. Prices may not appear to be rising because they are making packaging smaller. "— Rickoshay
#3
Cirrus
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Posted 08 June 2007 - 10:08 AM
I actually use this method sometimes on longer term positions with stops based on weekly charts. I wait for the level to be violated on a weekly closing basis.
The method basically ignores intraday 'noise' and takes the closing price to avoid this intraday noise.
#4
calmcookie
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calmcookie
Posted 08 June 2007 - 11:32 AM
So it can only be done manually (I mean, by watching, yourself) ... it cannot be placed, as an automatic order ... is this correct?
Still confused as to what the Almanac Investor people really mean by this. But thank you for the responses.
C.C. 
#5
lscharpen
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Posted 08 June 2007 - 12:43 PM
CC
The type of trade you are asking about I believe is called a "stop close only" (SCO). Whether you can place such an order depends upon whether your 'broker' accepts such orders. For example, I believe Interactive Brokers does accept them. Fro some additional information see this link:
http://www.traderslo...-Only-Order.htm
In the interest of full disclosure, I've never used such an order myself.
Lee Scharpen
The type of trade you are asking about I believe is called a "stop close only" (SCO). Whether you can place such an order depends upon whether your 'broker' accepts such orders. For example, I believe Interactive Brokers does accept them. Fro some additional information see this link:
http://www.traderslo...-Only-Order.htm
In the interest of full disclosure, I've never used such an order myself.
Lee Scharpen
