Question about buying trailing stop orders

[stojakapimp]

If I want to buy a trailing stop order at 7%, do most brokers also set a stop limit for buying the stock at 7%? I just tried buying a trailing stop order at 7%, but it won't actually buy the position until the price moves up by 7%. Is this common, or is there a way to buy the stock at its current price but still have a trailing stop on it?

Thanks

[skiracer]

If I want to buy a trailing stop order at 7%, do most brokers also set a stop limit for buying the stock at 7%? I just tried buying a trailing stop order at 7%, but it won't actually buy the position until the price moves up by 7%. Is this common, or is there a way to buy the stock at its current price but still have a trailing stop on it?

Thanks

I don't think you buy trailing stops. first you buy the stock and put a stop in place or a sell order on it at the percentage down from your entry, if long or up if short, that you want to protect yourself at. some platforms will let you program a trailing stop that escalates upward or downward at specific intervals as the stock moves either up or down. usually it is easier to do it physically on your own as the stock moves up or down.

[stenzrob]

A trailing stop only adjusts in one direction, but can be for a buy or sell. A trailing stop is exactly like a ratchet mechanism. In the interest of simplicity, I will not discuss short positions, only long.

If you want to buy a stock that's going down or going nowhere, but only after it reverses and starts to move up, you can enter a trailing stop BUY order, usually by either $ or %. If the price moves down, the trailing stop will move your buy trigger price down, but if the price moves up, it just gets closer to your trigger.

If you own a stock, and want to sell if it goes down from it's peak by more than some % or $, you enter a trailing stop sell order. Again, once you enter the order, the trigger price will only adjust up, when the stock price moves up. I use this one a lot, especially if I know I will not be able to watch the action.

[stojakapimp]

Thanks for the replies guys.

Yeah, what I was looking for was buying a stock then placing a sell order using a trailing stop at a certain percentage.

Oh I have so much to learn.

[skiracer]

Thanks for the replies guys.

Yeah, what I was looking for was buying a stock then placing a sell order using a trailing stop at a certain percentage.

Oh I have so much to learn.

I am not doubting Stenzrob in the least but I have never seen a trailing stop buy order. Maybe some trading platforms have something like that but mine doesn't. I always buy the stock first and then put a stop in place and move it up as the stock moves up or down. Anyone else have the ability to do what Stenz was talking about or the ability to place program in a trailing stop that would automatically raise the stop if the stock moved up a specific percentage. my platform doesn't have that. I'm not sure but I could imagine some having that available.

[stojakapimp]

I am not doubting Stenzrob in the least but I have never seen a trailing stop buy order. Maybe some trading platforms have something like that but mine doesn't. I always buy the stock first and then put a stop in place and move it up as the stock moves up or down. Anyone else have the ability to do what Stenz was talking about or the ability to place program in a trailing stop that would automatically raise the stop if the stock moved up a specific percentage. my platform doesn't have that. I'm not sure but I could imagine some having that available.

I use Scottrade and they seem to be able to do it. When I first asked the question, I had just purchased a trailing stop buy order, and it put is as an open position where my buying price was 7% higher than the current stock price. I was confused though and meant to do a regular market buy, and then after that buy a trailing stop sell order. Now my selling price is set to 7% below the current share price, and should move up with the stock to maintain that 7%.

I believe this is what you're asking, correct?

[skiracer]

I use Scottrade and they seem to be able to do it. When I first asked the question, I had just purchased a trailing stop buy order, and it put is as an open position where my buying price was 7% higher than the current stock price. I was confused though and meant to do a regular market buy, and then after that buy a trailing stop sell order. Now my selling price is set to 7% below the current share price, and should move up with the stock to maintain that 7%.

I believe this is what you're asking, correct?

you're confusing me with the terminolgy," buy a trailing stop sell order". I think you mean place a stop at a specific point below or above your entry price, which is in effect a sell order to exit at a prestated price if the stock falls to that point. I know some platforms and brokerages have the capabilities to allow you to place what they call a trailing stop or sell order that will keep raising the stop to within a specific percentage of the stock's price , say 7% lower than the actual price, as the stock goes up in price.
Placing a stop is actually placing a sell order to sell the stock if it hits that point. It can be either below or above the realtime intraday price of the stock. So I think you can place two sell orders at the same time. One if it falls to a certain point and the other if it goes higher to a certain point. I think we are talking about the same thing but that you are calling it "buying a trailing stop order". I guess you can call it whatever you want as long as it accompolishes what your needs are.