At what percentage should i set my sell limit below the price of the stock i bought, so i don't lose to much?

Question

Whats the rule of thumb?

Is it possible to put two sell limits on at the same time?

Or would it have to be a stop limit and a sell limit at the same time? Thanks

Answer 1

If you are investing, stop order is not needed.

Decide mental stop and sell when it is reached.

Lilit 8-10%

If you are day trading, stop order should be placed along with buy order or immediatley after your puchase order.

limit 1 to 2%

Answer 2

It depends.  Investor's Business Daily recommends selling at 8% below your cost.  Of course, if a stock turns bad, you don't have to wait for an 8% loss, just sell it.

You may also wish to consider the volatility of the stock.  I was trading INP (India ETN) at a time when the price routinely moved 8% a DAY (up and down).  So an 8-10% stop loss wouldn't have worked well for me.

Are you trading or investing?  Many investor's don't use stop loss orders.  Technical analysis is very popular.  Some trading strategies are very common.  There are professional traders who look for the obvious stop loss price and then "run the stops".  They want to force people out of their positions to drive down the price.

But if you're just starting, try an 8% stop sell, GTC

Answer 3

Depends on the stock and how volatile it is.

There's a stop order or a stop limit order.

With a stop order, if the price falls below a certain level the stock is sold at the market price.

With a stop limit order, if the price falls below a certain level, then the stock is sold at the limit price or better. Therefore, if the stock gaps down below your stop price, the stock may not be sold immediately.

The stop order is better if you want to make sure the stock is sold.

The stop limit is better is you want to avoid selling the stock at a very low temporary level.

it's all very complicated. I hope this makes sense.

Answer 4

I think that is the big institutional investors want the individual investors to do for them to make big profits by controlling the share prices.

I think big institutional investors usually control the share price almost 30% up and 30% down(total 60%).

Answer 5

Most experienced traders/investors wll sell a stock when it drops 8%-10% below the purchase price.

There are time that one would enter a stop at a few cents below the latest support point, but most will go with the 8%-10% point

Yes you can legally put in two sell orders at the same time. BUT is not a vey good practice to do.   Very few floor traders will use two (or more) sell orders on the same position



The purpose of stops is to protect you so you don't have to keep watching the market, so to put in two sells, you are really asking for trouble

Most traders/investors use stop orders, every one should use them it is a good use of proper management.

Answer 6

8% is a very reasonable stop loss point... but sometimes you will get used to more in a stock if you trade it frequently...

...only a few experiences will give you YOUR particular strategy. You decide if " getting out too early", before a bounce back, is more painful than " holding on a little too long" ,never getting the expected bounce.