Stop Loss - WHEN to place?

[bm200906]

I'd like to get some discussion going on the pros and cons of WHEN to place a Stop Loss. I know some people trade without placing hard stops but I think they're a good safeguard (eg if your broadband connection goes down or computer crashes etc). So assuming you do use them - do you place your Stop Loss immediately BEFORE or AFTER you open your trade? What are the pros & cons of each?

Also, if you're trading a stock with a high ATR (eg GOOG, GS, AMZN etc) - which should always be done with great caution - does anyone have personal experience of one method working better than the other?

 

[ibetyou]

Hi BM.I always place a stop loss on entering a trade,if i know how much i can possible lose on the trade if all goes wrong and i,m still happy taking that risk it takes away the emotions of trading.
The art is nowing where to put it.
So i,m a before and move it up after guy.

 

[Windowsill]

I'd like to get some discussion going on the pros and cons of WHEN to place a Stop Loss. I know some people trade without placing hard stops but I think they're a good safeguard (eg if your broadband connection goes down or computer crashes etc). So assuming you do use them - do you place your Stop Loss immediately BEFORE or AFTER you open your trade? What are the pros & cons of each?

Also, if you're trading a stock with a high ATR (eg GOOG, GS, AMZN etc) - which should always be done with great caution - does anyone have personal experience of one method working better than the other?

At the same time if you have a decent platform. IMO you should have a better idea of where the stop goes than the entry.

 

[Masquerade]

What's a stop loss?

 

[timsk]

What's a stop loss?

Haha - very funny!

I have bracketed SL and OCO take profit orders either side of my limit entry. If I get filled, the other two orders automatically become pending orders. So, if my PC goes bang, or there's a power cut (a regular occurence for me) - I don't have to worry about my trade. Once filled, the SL is never moved away from the entry price.
Tim.

 

[be-positive]

So i,m a before and move it up after guy.

that made me

 

[tomorton]

Fully agree with Tim above. The stop-loss and profit target should be visible by TA when you enter, its not sufficient to TA a lovely entry signal. Its good exits that make a good trader, not the entries.

 

[AMCL]

Are oco orders held at the exchange or the broker?

 

[Pento]

Stops are for men who drive buses.

 

[cm-phil]

Plain and simple you should place the stop loss when the loss isn't palatable. You should always enter a trade with a ceiling and a floor. If you wait long enough, you'll either lose it all or be dead.

 

[soniya sharma]

STOP LOSS is mainly quoted in order to limit the investor's loss and these position is the most secured place where if the person is bearing a loss that would be at minimum level. Let say Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

you should put up your stoploss just close to the entry price so that you can safely come out of the fluctuating market.

 

[EricTheTrader]

I use stop loss upon entering the trade... I suggest once you place your stops, it has to be an unbreakable rule.. don't expose yourself too much on risks...