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24-10-2013, 10:49 PM
(This post was last modified: 24-10-2013, 11:01 PM by Temperament.)
(24-10-2013, 09:42 PM)Clement Wrote:Actually i should use progressive stop loss, that is i shift my selling stop loss price higher and higher as long as my stop loss price is not trigger and the market price is going higher and higher ( in a bullish market). But all this is monitored mentally by following the market quite closely on my computer. But i enter my selling price as limit order. Ha! Ha!(24-10-2013, 09:33 PM)Temperament Wrote:(24-10-2013, 08:16 PM)Jared Seah Wrote: Of course Clement.So Stop Loss can be used to protect your gain too. In this case, this is call "Progressive Stop Loss".
The stop-loss point will be dependent on many other factors - depending on the vehicle chosen. It's never one size fits all.
The bid-offer spread is one reason why penny stocks are more "expensive" when it comes to transaction costs. But speculators love them as 1 to 2 bids already can make 3-5%!
20% is just for illustration since this is an investors forum. To recover from a 20% loss we just need a 25% win the next time round. Very achievable.
If using 50% margin of safety (is this realistic?), that means these value investors must be sitting on lots of 2 baggers now or as part of their track record. Their stop-loss point can be 50% to prevent a winning position from swinging to a loss
Traders use other "stricter" rules like never risking 2% of our total portfolio value in a single position. Traders are less philosophical.
No chips; no honey.
When you want to sell, of course you want to sell at the highest price possible. That is provided the market doesn't suddenly crashes. i have said i use progressive limit price instead as i am very greedy.
It really depends on why you want to sell. If it is because you see a better opportunity or need cash, then wouldn't it be best to sell immediately? If it is because of lack of margin of safety, the a trailing stop works while you look into whether you were too pessimistic in your calculations.
So today my limit sell order is not executed doesn't mean tomorrow the opening price can not be higher or close higher. i do this because i don't want to sell the lots at one go.
Basically i sell too early and buy too early too. But selling too early for me is O. K. as long as i have profited and realised capital to buy again in "appropriate time". For me there is always a better time to buy and always a better to sell. i am a "ROJAK INVESTOR". Ha! Ha!
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
