Rookie into the stock market.

[wings_of_eagles]

evantwheeler
You should always enter the 'Stop Loss or Stop order' as a MARKET order, if the stock gaps over or under your stop, a LIMIT order it will not execute it, your still in the position until you manually cancel it or it hits the price of the stop. A Market order will execute after the gap has hit, taking you out of the position at the gap price minimizing the pain LOL.

Look into the difference of Limit and Market orders.

Stop Loss, or Stop Limit Orders are the same in my book. Its a way to limit your loss on a position..
Say you own Stock XYZ for $100/share, but you own $10,000 worth of it..
You only want risk 5%. So you set a Stop Loss, or Stop Limit order for $95.00 (in most platforms, some allow 5%).
In a perfect world, if the intra day trading and it XYZ drops to $95, you order is triggered and executed, limiting your loss.

Now a key thing here.. it not fool proof.
Lets say XYZ is Trading at $100... you have Stop Limit Order in place at $95 and in the middle of the night they have catastrophic loss of a refinery blowing up, killing thousands of people... The next morning the markets open and XYZ is trading at $80/share. You order will trigger, and you will get $80/share, not $95...

These types of orders can you help you but you need to understand that they work great when the market is open, but cant always protect you.

To one persons question..
Part of my strategy is after I place any order, I imediately set stop loss/limit order, to protect my self. But I trade from my phone at times... so I watch things like a hawk. I am always moving the “limit” of those orders.

So I buy a stock at 100, with a 90 stop... as the stock moves into profitability to say 115, I move the stop to 105 ish....
9 months later I am 120, with 110 stop.... protecting my profits.....

So, LVGO.... I had a 10% stop on it... I kept moving that up, and up and up... I got into that stock at $25, $26, in several stages...
Guess what,,, as it moved into the 50s, I had 44-45 dollar stop.... time to move the stop again.

 

[Halvecto]

evantwheeler
You should always enter the 'Stop Loss or Stop order' as a MARKET order, if the stock gaps over or under your stop, a LIMIT order it will not execute it, your still in the position until you manually cancel it or it hits the price of the stop. A Market order will execute after the gap has hit, taking you out of the position at the gap price minimizing the pain LOL.

Look into the difference of Limit and Market orders.

This goes both ways. It depends on how volatile the stock typically is and how bad you want out.

Stop Loss is a sell order that requires a stop price included that triggers when a stock trades at or below that price. Once the price is hit, the next or whenever the specialist can get a fill, your sell will be be submitted. That may be higher or much lower in the case, as mentioned, of a gap down or gap opening. Typically your 100 or even 5000 share order is batched with others. Example: Stop Loss Sell XYZ @ $50. If XYZ prints $50, your Limit Sell becomes a Sell @ market. At that point, it will fill at "best effort", which means it depends on how many big trades are around.

Stop Limit is a Sell order that requires a Stop price and a Limit price. For instance: Stop Limit Sell 100 XYZ @ $50 Limit $49 . Meaning, if XYZ trades $50, my order turns into a Limit Sell @ $49. If XYZ gaps down, it will not sell until back up to $49. If it trades again at $50 or higher, it will get that price.

 

[wings_of_eagles]

In my trading, the reason I put in a stop loss is to minimize my loss, I want to get OUT with minimal loss, move on to the next opportunity.
Going into the trade I already know what my risk(loss) and reward(target) will be.
Most of my trading is in futures (more leverage), but the my plan is the same in stocks.

This goes both ways. It depends on how volatile the stock typically is and how bad you want out.

Stop Loss is a sell order that requires a stop price included that triggers when a stock trades at or below that price. Once the price is hit, the next or whenever the specialist can get a fill, your sell will be be submitted. That may be higher or much lower in the case, as mentioned, of a gap down or gap opening. Typically your 100 or even 5000 share order is batched with others. Example: Stop Loss Sell XYZ @ $50. If XYZ prints $50, your Limit Sell becomes a Sell @ market. At that point, it will fill at "best effort", which means it depends on how many big trades are around.

Stop Limit is a Sell order that requires a Stop price and a Limit price. For instance: Stop Limit Sell 100 XYZ @ $50 Limit $49 . Meaning, if XYZ trades $50, my order turns into a Limit Sell @ $49. If XYZ gaps down, it will not sell until back up to $49. If it trades again at $50 or higher, it will get that price.

 

[Waffles]

Anyone get into NKLA during VTIQ? lol
Got into VTIQ at @17. Im holding this bitch long.
Still have positions open on F, KO, BUD, FMCI and one MGM 7/17 23c

Trailing Stop losses are your friend
Printer go BRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR