Brett Grendahl's  Instablog

Brett Grendahl
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  • Being Nimble with a Stop Loss 0 comments
    Mar 23, 2010 11:46 PM | about stocks: SEED, RMBS

    Do you have mixed thoughts when you set your stop loss orders?  I know I do!

    The battle is keeping the loss small if the trade goes against you but also keeping your order out of the "normal" chop in the price action.

    Just last week, I pulled out my standing stop loss orders on my long positions on SEED and RMBS, even though the price action breakdown looked like it might pick up steam.

    Why?

    Well, my gut told me this was a move, in both stocks, to find support and the uptrends will continue.

    So far, so good!  The price action in each did push lower than my original stop orders and has now moved back higher.  The best part is, I am still in these positions!

    No one said stock trading was easy and proper setting of stop loss orders is definitely one of the most challenging parts.  Don't you agree?

     

    Disclosure: Long SEED and RMBS

    Stocks: SEED, RMBS
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