How do you use stop losses / limits?

Question

How do you use stop losses / limits?

Answer 1

I always use a "stop" & sometimes with an "OCO" I add a sell limit price.  Usually I do this within a well defined channel.

Answer 2

Request "stop" or "limit", then insert the price at which you won't go below (stop), and the target price at which you want to sell (limit).  

Answer 3

Stop orders should always be used, they lock in profits or protect you from major losses.

You enter the "stop" at the greater of a few cents below the next support price or 8% (or 10%) below your purchase price.

As the stock moves up you can move the stop up either to the support price (usually a few cents less) or a percentage you select.

As the price of the stock moves up, you keep moving the stop, if you have a decent profit in the trade, tighten the stop, (keep it close to the current price)

Don't worry if the stock bounces and you get stopped out, (especially if you have a profit) you can always go back in and play the next run or just find another stock.

You never buy a stock unless you know when and where you are getting out.

Answer 4

If you mean on the same order you place it as an OCO order. One cancels out the other.

Answer 5

Hi I use stop loss orders to protect my downside exposure.  I don't use them all the time but, the one time I always do is if I am taking an extended vacation and will incommunicado for more then two weeks.  A good benchmark price for a stop loss is the 13 week moving average price.  Another heuristic is 5%.  There are risks with stop loss orders if the underlying stock price is volatile.  For example the price may swing below your stop loss point and your order becomes a market order, executes at market price and then rebounds all in the same day.  You sold the stock and then it rebounded, your going to feel bad about that trade.

I have found limited use for limit orders.  At best you might be able to shave a little off the purchase price or increase  you selling price.   If you are of a mindset to set a target selling price and be done with it, then a limit sell price is a good option for you.  The downside risk is the stock goes way beyond your target selling price (GOOG) for example.