sdecanio
I am new and may be missing something but how can the TLT trade still be open if the stop loss was 119.51?  Today's (1/18/19) low was 119.39 at 12:16 Eastern and the swing low was 119.51 on 1/16/19. Screen Shot 2019-01-18 at 3.53.27 PM.png  Thank you.
Quote 0 0
AbovetheGreenLine
Welcome!

Stop Loss Orders are based on the Closing Price, because many times the Market Makers will drop the price below Support during the day to "Run the Stops".

Please search the Forum for "stop loss rant" or "stop loss" to read more.

The Green Line RULES are here, and on the Main Menu of the web site under FAQ / Rules.


Question: 

You mention that stops should always be triggered by closing prices.  My understanding is that this is a way to avoid being stopped out by market movers or unusual volatility.  However, it makes the mechanics trickier (more difficult to use automated stops) 

a) Can you explain more about why to trigger on the close price? 

b) Is the result of a trigger a market order that will be executed either during extended hours or at the beginning of the next day? 

c) Would you recommend trying to execute the sell before market close if it looks like it will close below the stop?

Answer: 
 Many times the Market Makers will push the Investment below Support during the day… Many will EXIT (which is ok), but if it Closes BACK ABOVE SUPPORT, you should GET BACK IN. 

End of Day traders don’t see all of that… Closing below support keeps you from getting whipsawed, but everyone can have THEIR OWN STYLE. Do what makes you Money…

Most would probably get out near the Close if it is obvious that Investment is no longer bouncing at Support, and Closing Below… Main point is try to AVOID early day Dips below Support that end up Closing back Above Support.

Good trading, and tell your friends!
Quote 0 0