Bought URRE at 1.07. Placed a stop loss with Fidelity @
$0.98. Stock closed yesterday at $1.03. Opened today @
$0.938 (not sure if that was bid or ask), my shares were
sold @ $0.90 (low of the day), shares immediately rebounded up
to $0.976.
Don't fret about it, these things happen from time to time, and
it's a low priced stock so it's gonna be volatile. For low
priced stocks you can have a wider stop, or one thing to do is to
check it pre market, and if it's gonna gap, you can always take the
stop off, then re-add it back sometime after the market opens and
then decide what to do.
For example, I place GTC buy stop orders in all the time for
stocks, however I make sure to check them in the morning, just in
case the stock is going to gap way up, I don't want the buy stop
order hit and I'm chasing a big gap up. For example let's say
I have a buy stop order in at $10, the stock is trading at $9.80
the day before, but the next morning the stock is trading at $11
pre market, well I'm gonna cancel that buy order so it isn't hit.
Also, getting stopped out is not a bad thing in trading, Steve
and I run into too many members here who buy a stock and never put
a stop in, then they hit us up asking who they should do as they
are down 30% on a position that went against them and they held it
down because they didn't have a stop, so they stayed in the 'hold
and hope mode'. Better to have a stop then not having a stop
because it instills discipline, which is important in
separating yourself from the 'masses'.
Any thoughts on how to prevent this from happening again?
Posted by RichieD on 16th of Nov 2011 at 09:56 am
Bought URRE at 1.07. Placed a stop loss with Fidelity @ $0.98. Stock closed yesterday at $1.03. Opened today @ $0.938 (not sure if that was bid or ask), my shares were sold @ $0.90 (low of the day), shares immediately rebounded up to $0.976.
What did I do wrong??
Don't fret about it, these
Posted by matt on 16th of Nov 2011 at 10:05 am
Don't fret about it, these things happen from time to time, and it's a low priced stock so it's gonna be volatile. For low priced stocks you can have a wider stop, or one thing to do is to check it pre market, and if it's gonna gap, you can always take the stop off, then re-add it back sometime after the market opens and then decide what to do.
For example, I place GTC buy stop orders in all the time for stocks, however I make sure to check them in the morning, just in case the stock is going to gap way up, I don't want the buy stop order hit and I'm chasing a big gap up. For example let's say I have a buy stop order in at $10, the stock is trading at $9.80 the day before, but the next morning the stock is trading at $11 pre market, well I'm gonna cancel that buy order so it isn't hit.
Also, getting stopped out is not a bad thing in trading, Steve and I run into too many members here who buy a stock and never put a stop in, then they hit us up asking who they should do as they are down 30% on a position that went against them and they held it down because they didn't have a stop, so they stayed in the 'hold and hope mode'. Better to have a stop then not having a stop because it instills discipline, which is important in separating yourself from the 'masses'.
you a stop loss limit or don't use a stop at all on a 1.00 stock
Posted by zach06 on 16th of Nov 2011 at 09:57 am
you are basically buying an option with no expiration