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Setting up stops?

Discussion in 'Shares' started by MJK, 26th Aug, 2007.

  1. MJK

    MJK Well-Known Member

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    17th Aug, 2005
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    280
    I'm using St George direct shares / E Trade to do my direct share investments.

    When I set up a trailing sell order or more commonly known as a stop, I can select a delay after market open and a halt before market close. What are peoples ideas / tips about doing either of these? How long a delay if any? How early a halt if any?:confused:

    What sort of percentage drop do you allow before you trigger a stop. I would have thought it would have to be less than 1% but there could be problems with this if the market sold you and rebounded before you could get back in again?

    MJK
     
  2. Tropo

    Tropo Well-Known Member

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    Consider 2% stop (1% stop may be too tight).
    The total loss for any single trade/open position must not exceed 2% of your total capital.
    You can also use 'countback "line as a stop, or latest support level.
    :cool:
    PS - Obey the stop signs
     
    Last edited by a moderator: 26th Aug, 2007
  3. MJK

    MJK Well-Known Member

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    Thanks Tropo,

    What about this delay business at open. Eg stops can be "immediate" or ignored until say "10minutes after open".
    Whats the logic here? What would you do? I'm inclined to have no delays.

    MJK
     
  4. Tropo

    Tropo Well-Known Member

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    I used to hit the button if my stop was hit (no delays!).:cool: