Decide where to put your stops, if you are a swing trader then
you can have a wider stop, define yourself, there is no set way to
play any of this stuff.
Posted by drorlando on 19th of Aug 2008 at 10:16 am
Posted by rgoodwin on 19th of Aug 2008 at 10:25 am
Notice Matt's reply a few posts below. No one can tell you where
to put stops. You have to decide your own tolerance. If Matt
suggests a trade via the watch list, it sometimes will have a 2 - 3
point stop, sometimes more. Can you tolerate that much? If not, you
have to decide on your own what makes a good point to get out.
There are suggestions in various books previously posted about on
this blog as to how to decide on an OBJECTIVE stop - but objective
or not, you have to decide before you get in.
Posted by pthoreson on 19th of Aug 2008 at 10:38 am
I have a full position in DIG now. Set my stop at 75.25, and as
you know that came dangerously close. There was the chance DIG
would re-test support, and re-test it did.
Stops do vary by the trade, and with the 2x ETF's you need a
higher risk tolerance to trade these as they tend to require wider
stops. I learned the hard way when I first began trading the 2x
ETF's that setting stops too tight only resulted in their
being hit nearly every stinking time. On the other hand, your stop
can have a logical point, such as support or prior day lows, or it
can be based on risk tolerance, such as by using a % of the trade
cost. I use TradeStation and they have a trailing stop option for
either % or $, which makes setting stops easy. That option alone
has paid for years of commissions.
You can also set stops for the ultra ETFs to trigger based on
the underlying index price or the relative ETF, i.e. use XLE to
trigger a stop on DIG. Because the relative ETFs have more
volume, smaller spreads and less emotional players in general they
may be somewhat less subject to whipsaws.
Posted by pthoreson on 19th of Aug 2008 at 11:05 am
That brings up a good point. Whether to bail in pre-market when
your stop appears in danger. I don't. DIG traded as low as
75.40 in pre-market this morning.
Is Dig a sell? Thought it
Posted by lrhoades on 19th of Aug 2008 at 10:11 am
Is Dig a sell?
Thought it was a swing trade?
if it makes a new
Posted by googool on 19th of Aug 2008 at 10:15 am
if it makes a new low on me on 60min close basis, it will go, I have dumped into run ups, so, a new low will still leave me with some gains
Decide where to put your
Posted by matt on 19th of Aug 2008 at 10:14 am
Decide where to put your stops, if you are a swing trader then you can have a wider stop, define yourself, there is no set way to play any of this stuff.
Posted by drorlando on 19th of Aug 2008 at 10:16 am
Where is the point to
Posted by lrhoades on 19th of Aug 2008 at 10:18 am
Where is the point to put a stop in place for dig?
I thought from prevous posts it was around 75 level
STOPS
Posted by rgoodwin on 19th of Aug 2008 at 10:25 am
Notice Matt's reply a few posts below. No one can tell you where to put stops. You have to decide your own tolerance. If Matt suggests a trade via the watch list, it sometimes will have a 2 - 3 point stop, sometimes more. Can you tolerate that much? If not, you have to decide on your own what makes a good point to get out. There are suggestions in various books previously posted about on this blog as to how to decide on an OBJECTIVE stop - but objective or not, you have to decide before you get in.
DIG
Posted by drorlando on 19th of Aug 2008 at 10:22 am
Oil is bottoming so ultra ETF's can give you wipsaw. I prefer to play individual stocks during bottoming based on data...low invetories and shutdown.
Correlate Ultra ETF's with non ultra long. XLE shows good support at 69.5 I would put stop DIG at 75 AND RAISE it as XLE advances.
DIG
Posted by pthoreson on 19th of Aug 2008 at 10:38 am
I have a full position in DIG now. Set my stop at 75.25, and as you know that came dangerously close. There was the chance DIG would re-test support, and re-test it did.
Stops do vary by the trade, and with the 2x ETF's you need a higher risk tolerance to trade these as they tend to require wider stops. I learned the hard way when I first began trading the 2x ETF's that setting stops too tight only resulted in their being hit nearly every stinking time. On the other hand, your stop can have a logical point, such as support or prior day lows, or it can be based on risk tolerance, such as by using a % of the trade cost. I use TradeStation and they have a trailing stop option for either % or $, which makes setting stops easy. That option alone has paid for years of commissions.
Ultra ETFs: Stops
Posted by martin on 19th of Aug 2008 at 12:24 pm
You can also set stops for the ultra ETFs to trigger based on the underlying index price or the relative ETF, i.e. use XLE to trigger a stop on DIG. Because the relative ETFs have more volume, smaller spreads and less emotional players in general they may be somewhat less subject to whipsaws.
Stops
Posted by pthoreson on 19th of Aug 2008 at 12:29 pm
Interesting idea I had not thought of. Thanks.
Yep, good point. I also
Posted by matt on 19th of Aug 2008 at 12:28 pm
Yep, good point. I also like to gauge my buy/sell signals on the 1X ETF's
The stop listed on the
Posted by matt on 19th of Aug 2008 at 10:49 am
The stop listed on the Watch List for DIG was not hit, it's at 75.6, but again that's a guidline
Stops DIG
Posted by pthoreson on 19th of Aug 2008 at 11:05 am
That brings up a good point. Whether to bail in pre-market when your stop appears in danger. I don't. DIG traded as low as 75.40 in pre-market this morning.
DIG is very wild in
Posted by matt on 19th of Aug 2008 at 11:07 am
DIG is very wild in the mornign, I don't trust the movement during the 1st 30 min
Stops on Watch List are not predicated by pre market
Again, follow your own plan, the Watch List is a guild only
i decided to sell...my own
Posted by dylan398 on 19th of Aug 2008 at 10:12 am
i decided to sell...my own preference...