RE: Fingers Crossed.... Should be a Blue day Today?29 Sep 2020 19:33
karv1,
I get your points and your rationale. Each to their own and all that? I have used Stop Losses to preserve the bulk (90%) of my Capital on many occasions when a share has headed severely down at Market Opening and then turned sour e.g. I thank God for using a Stop Loss that I’m not one of the poor souls still holding Lloyds Bank Stock staring at unimaginable losses and believing it would recover having bought it at 70p only to see it drop below 60p, 50p, 40p then 30p! I hit out at 63p. Obviously, I’m never happy to lose money... who is? I’d rather look at the positive of only losing 10%. My only regret with my last use was that, with hindsight, perhaps I should have set it at 15% of Purchase Value rather than 10% what with all the current volatility? Oh well, everyday is a school day?
As for how they work , pretty simple, you place a Sell Order with the understanding that it will only be activated if the price falls to an agreed amount e.g. You purchased at 102.94p and have instructed a Sell Order to take place if the stock should fall by 10.29p (10%) to 92.65p meaning that you have Stopped Losses deepening. Works especially well if you are working 9 till 5 in back to back client meetings.
Clearly the opposite also exists i.e. a Purchase Order with a specified price e.g. if the Stock should reach £1.00 then an automated order to purchase say £10k of Stock in your absence can take place.
Clearly all amounts, values and percentages are individual and can be increased/decreased as instructed by yourself.
As for today, pretty much marching on the spot. It creeped over 108p a couple of times only to end the day just 0.56p below yesterday’s close. It would be really good to see if this stock could break the £1.00 level and stay there by Friday? Fingers crossed.
Good Luck.
All IMHO please MYOC.
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