RE: Stop loss question25 Apr 2020 14:40
Ash174. Here's my experience of stop loss. I held 200, 000 shares in a mining company that took me 3 years to build up. I started at 1.6p and bought on the way up when I had Funds. One day, whilst the shares were at 36p, BIG profit)i thought I would set a stop loss at 25p so that I didn't lose the lot if they crashed. One morning whilst on holiday I decided to check my account. They had been sold for 19.7p and amazingly over the next weeks they climbed back to 38p.
I then thought, who knows about my stop loss apart from me? Simple. The company I am with. The algorithms know where stop losses are set and will drop the price to fill massive orders. You lose ...they win. My favourite conspiracy theory. Be careful. I should have taken my profit before going on jollies and reinvested it later or just hung on and I would have made it back. Cost me £50k.:-(