Stop Loss, Trailing Stops & Time Stops

[winston]

Why I'm a Huge Fan of "Mental Stops"

Lots of traders learned this one the hard way…

By SHAH GILANI

Source: Money Morning

https://moneymorning.com/2017/05/19/why ... tal-stops/

[winston]

Why I'm a Huge Fan of "Mental Stops"

Lots of traders learned this one the hard way…

By SHAH GILANI

Source: Money Morning

https://moneymorning.com/2017/05/19/why ... tal-stops/

[winston]

How Our System Will Keep Us “In the Game” When the Coming Market Storm Hits

by D.R. BARTON, JR.

There are several methods that you can employ for placing stop-losses.
1. Set stops based on a fixed dollar amount (I’ll get out when the stock drops $1.50).
2. Set stops based on support or resistance levels.
3. Set stops based on the volatility of a stock or commodity (one way to do this is by setting the stop using a multiple of the daily range).
4. Set stops based on a change in trend or some other indicator defined by your system.

Source: 10 Minute Millionaire

https://10minutemillionaire.com/2017/08 ... /#deeplink

[winston]

What percentage do you recommend on our stops?

That’s a great question. In a perfect world, it’s based on two things.
1. How much volatility is normal for a stock?
2. Where is the support?

As far as volatility, if you arbitrarily decide to put a stop 5% below where your stock is, you might get stopped out regularly if that stock moves up and down in a normal, regular 7- 10% range.

You must give stocks room to meander within their average range of movement. If you want a great technical measure of what kind of range a stock moves in, use “average true range” calculations. Look it up. It’s not simple to calculate, but ATR is ideal for defining the parameters of a stock’s natural movement.

Nothing’s perfect. After all, stocks change their patterns. But placing your stop just below their range is a good starting point. As your stock moves up, raise your stop accordingly. With a methodology like this, you’ll be moving the stop up slowly and not hoist it up too much just because the stock jumped. Calculating the new spike into the ATR will give you a new range of volatility.

Second, I use technical analysis to look for support levels. If I’m not using an ATR calculation, I’ll use a support level that’s not too close to where the stock is now, but the next level below.

If I’m using both ATR and support levels, I’ll choose the support that’s below the lower parameter of the stocks volatility range (ATR). That may be a little too far below where I’d like my stop, but I want to give the stock room.

If it’s truly too far below and I’ll lose more than 10 or 15% on the stock, I’ll fall back to maybe 2% below where the bottom of the stock’s ATR is.

Source: Wall Street Insights

[winston]

Why I Run “Ultimate Trailing Stops” on All My Investments

by Keith Fitz-Gerald

Some examples of what could trigger an Ultimate Trailing Stop.
1. Is the CEO still in place and do I like his vision as a leader?
2. Has there been a game-changing development in the industry that obviates the product suite?
3. Is price in line with value?
4. has something changed for the worse?
5. Do I have to sell because I need the money?
6. Will selling help me rebalance to buy more upside?
7. If I don’t want to buy it today, why am I not selling?
8. Is the smart money leaving?

Source: Money Morning

http://dailytradealert.com/2017/12/03/r ... vestments/

[winston]

The Psychology of Taking Losses

Here are the 3 keys to using stops.

By JAMES "REV SHARK" DEPORRE

1. Stick with the plan. Don't look for reasons to modify the original stop levels

2. The selling decision can be reversed. Just because you sell a stock doesn't mean you can never own it again. You just want to develop a better strategy the next time around.

3. Rather than ignore your stops, sell the stock and then buy it back. If you have to pay a higher price that is just an insurance premium. Honor discipline first.

Source: The Street

https://realmoney.thestreet.com/investi ... yptr=yahoo

[winston]

When to cut your losses in the stock market

by Felicia Tan

“If you’re a trader, a 5% stop loss should be sufficient".

Source: The Edge

https://www.theedgesingapore.com/capita ... ock-market

[winston]

A Simple Method to Manage Your Risk

by Dr. David Eifrig

We tend to recommend a wide 25%-to-35% stop for more volatile positions, like oil and gas stocks. This will allow for the cyclical swings in share price that the commodity industry is known for without kicking you out too early.

Similarly, we tend to recommend a narrow 15%-to-25% stop for less volatile positions, like well-established companies that dominate their industries.

Source: DailyWealth.com

https://dailytradealert.com/2023/12/27/ ... your-risk/