Stop Losses (actually Gains) Question

[tscanlon]

Anyone care to give their thoughts on using stops to protect gains.

I missed the opportunity to sell KSWS for a 15% gain after it pulled back while away from my computer this afternoon, now I'm only at 10.5%.

Thanks,
T

[ChrisZXWJ]

I use them all the time...I'm a student, so when I go to class, I usually set stops to protect gains on most of my individual stocks. I tend to put them 3-5% below the current price. I've gotten kicked out of a few stocks that have later recovered and gone up more (VLGC being one of them) but in the long run, it seems to work out ok and it gives me peace of mind when I'm sitting through boring classes.

[Dave]

If it reached your target and you missed the chance to sell, I have to ask why you are not just using GTC limit orders?

-Dave

[tscanlon]

If it reached your target and you missed the chance to sell, I have to ask why you are not just using GTC limit orders?

-Dave

I was trying to let it run a bit, it actually went up to about 19%. I should have used a stop to protect my gains.

In some instances when I'm not as confident with a stocks ability to move significantly past 15% I do use a GTC limit order. Actually I have one set now on KSWS.

T

[Dave]

Rule #1: Don't get greedy.
Rule #2: see Rule #1.

[MEA_1956]

Rule #1: Don't get greedy.
Rule #2: see Rule #1.

Would Rule # 1 apply
CWEI in @ $17.60 now $36.49 Which is 107.33%
POG in @ $23.66 now $49.48 Which is 109.07%
NCEN in @ $23.66 now $41.60 Which is 75.78%
BIPH in @ $00.65 now $01.53 Which is 135.38%
NGEN in @ $05.38 now $12.05 Which is 123.98


So yes, I would agree to use a stop, if you are not able to keep a close eye on matters at hand. As Warren and Peter have both stated, why do you purchase a stock if you are no sure if it will grow. Now don't get me wrong, I will sell a stock @ 15% but I have that in its plan before I purchase it. I do feel life is more exciting when you are not always sitting on the porch and take a walk with the big dogs. Happy trading everyone and thank you Earnings Ernie. CCBI was another fine pick. ===> MEA

[Karel]

So yes, I would agree to use a stop, if you are not able to keep a close eye on matters at hand.

Now this doesn't follow from your example stocks! You quote some 100+% returns, but you would most likely have got stopped out earlier. It might be a good idea, but what stop loss setting are we talking about, and when do you initiate the order (after buying, at a 15% gain, earlier, later?), sliding or stepped?

I love backtests, doesn't everyone?

Regards,

Karel

[MEA_1956]

So yes, I would agree to use a stop, if you are not able to keep a close eye on matters at hand.

Now this doesn't follow from your example stocks! You quote some 100+% returns, but you would most likely have got stopped out earlier. It might be a good idea, but what stop loss setting are we talking about, and when do you initiate the order (after buying, at a 15% gain, earlier, later?), sliding or stepped?

I love backtests, doesn't everyone?

Regards,

Karel

To let the truth be known I have never used a stop, becuse I keep a close eye on the matters at hand. That doesn't mean that I don't agree with using them. If a person where to go on vac. in the woods let's say and there was no way of keeping in touch with the real world and it made them feel more comfortable then yes use stops. Yes I've missed a few goals and had to sell at a later date, but when I place my momey down on an MM pick I feel that it will be a larger than 15% return or I stay on the side and wait for the one I like.
CWEI was requested to Ernie to enter in to his dump last summmer and at that time is when I made my purchase. Pog was made in 2002 in Nov. So then as I have posted earlier I use a three sided approch. Long== 15% === In & Out.

P.S. what is sliding or stepped, I Don't know nothing about a stop lose setting eather. Please inform so when we go to Wolf Creek Pass camping this summer I might have a use for a stop.===> MEA

[Karel]

Well, I like limit orders myself much better than stop orders, and I have no experience with stops either. Stop orders can be at a fixed price, but some brokers also allow sliding stops, usually a fixed $$$ amount under the highest high since order entry (a percentage would be nicer). If you want to emulate this with fixed stops, you have to step up your order after each new high, or after, say, each new 5% gain. I call that stepped, but it isn't official jargon, as far as I know. It might make some difference in a backtest.

Regards,

Karel

[MEA_1956]

Well, I like limit orders myself much better than stop orders, and I have no experience with stops either. Stop orders can be at a fixed price, but some brokers also allow sliding stops, usually a fixed $$$ amount under the highest high since order entry (a percentage would be nicer). If you want to emulate this with fixed stops, you have to step up your order after each new high, or after, say, each new 5% gain. I call that stepped, but it isn't official jargon, as far as I know. It might make some difference in a backtest.

Regards,

Karel

Would like to know more about backtest. What is the steps one would have to preform to do such a thing.
Would like to know more on limit orders also.
Hell Mr. Profesor ,Give me Your Thoughts on CWEI. At this point it is looking like a rock getting ready to drop to the under world, The one year target is around the twenty dollar range and it is trading @ $38.71. If it has another day tom like today it will be double of its target . Have you ever heard of a company having its target doubled at it 's Earning report.
There is this gut feeling a person gets after it to late.I try to avoid this that is why I sold PETD TRCI and S in the third week of Dec. There is a time when a person must preserve captial and move on to new goals.
HUM BACKTEST sounds interesting. ====> MEA

PS Maybe someday if you have time you could also teach me how you inserted the Quote. Thanks Again

[the_daqman]

PS Maybe someday if you have time you could also teach me how you inserted the Quote. Thanks Again

click the 'quote' button at the top right of the message that you want to quote.

ns2