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Thread: Stops

  1. #11

    Join Date
    Dec 2007
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    906

    Default Re: Stops

    Thanks for sharing 14U
    -- Tom | My Trades

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  3. #12

    Join Date
    Feb 2009
    Posts
    654

    Default Re: Stops

    Quote Originally Posted by XL-entLady View Post
    I took a fairly large position in my UCO trade mentioned above and dollar-wise my gains are already making me smile. (Thanks you guys!! ) So I want to figure out a way to lock in some profit without getting shaken out of my entire position on a steep retracement before another run-up. So I just set up my first double trailing stop. I hope it works.

    Here's what I did. I set up one trailing stop to sell half my position at 9% retracement. Then I set up another trailing stop to sell the other half of my position at a much higher percentage of retracement.

    I'll report back after they both trigger. This could be interesting.

    Lady
    My first stop on UCO ultra crude oil triggered first thing this morning. I made a whole two cents a share over my buy-in, and then the price started to rise again.

    Lady
    If you think education is expensive, try ignorance. - Derek Bok

  4.  
  5. #13

    Join Date
    Dec 2007
    Posts
    906

    Default Re: Stops

    You gotta love stops. Like I said, they have done more harm than good in my futures account, but because of the high leverage, they do protect you from disasters.
    -- Tom | My Trades

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  7. #14

    Join Date
    Feb 2009
    Posts
    415

    Default Re: Stops

    I have this option in my USSA ROTH IRA account called a Stop Limit, but I can't seem to get it to work right
    Candlestick crack addict...

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  9. #15

    Join Date
    Dec 2007
    Posts
    906

    Default Re: Stops

    Isn't that a stop at a specific price. The problem with those is it can fly through it without getting you out. Am I thinking of the right stop?
    -- Tom | My Trades

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  11. #16

    Join Date
    Feb 2009
    Posts
    654

    Default Re: Stops

    Looking at pre-market prices today, after I got stopped out of my TZA yesterday. Like I said earlier, I'm developing a real love/hate relationship with stops and it's mostly 'hate'!

    I'm starting to think that instead of using stops I'm going to start hedging with a small amount of the opposite ETF. Has anyone ever tried this instead of stops? If so, how did it work out for you?

    Lady
    If you think education is expensive, try ignorance. - Derek Bok

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  13. #17

    Join Date
    Feb 2009
    Posts
    50

    Default Re: Stops

    Hi Lady;
    May I make a suggestion? TZA as you know is a 3X Bear fund. It is very volatile. It is basically a day trading vehicle, getting the most bang out of your buck. When I own it, or any other ETF's I don't use stops other than mental ones. I watch the price in relation to the 20 day moving average. If the price can keep pulling that ma up (staying above it) I will continue to play the ETF. Of course I'm constantly trading with 4% increments so TZA or FAZ are constantly getting me in or out so my risk isn't that high as I'm only playing with about 10% of my holdings per ETF.
    Buying TNA to hedge your TZA position will work providing you know when to sell your TNA position. There are a couple of ways to do this. See what Oscar says for S&P targets at livewithoscar.com (so you know about when to sell TNA) and take the hedge off. Another thing I do is look at a ratio chart. Go to stockcharts.com and type in TZA:TNA and add your favorite indicators. The indicators will show you if TZA is overbought or oversold in relation to TNA. Try CCI6or7, its one of my favorites. Hope this helps.
    Timmy, who goes over your tax return?

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  15. #18

    Join Date
    Feb 2009
    Posts
    654

    Default Re: Stops

    Thanks for the great advice! Rep points are the least I can do for this one!

    Lady
    If you think education is expensive, try ignorance. - Derek Bok


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  17. #19
    alevin Guest
    AutoTracker

    Default Re: Stops

    Quote Originally Posted by Here$14U View Post
    Hi Lady;
    May I make a suggestion? TZA as you know is a 3X Bear fund. It is very volatile. It is basically a day trading vehicle, getting the most bang out of your buck. When I own it, or any other ETF's I don't use stops other than mental ones. I watch the price in relation to the 20 day moving average. If the price can keep pulling that ma up (staying above it) I will continue to play the ETF. Of course I'm constantly trading with 4% increments so TZA or FAZ are constantly getting me in or out so my risk isn't that high as I'm only playing with about 10% of my holdings per ETF.
    Buying TNA to hedge your TZA position will work providing you know when to sell your TNA position. There are a couple of ways to do this. See what Oscar says for S&P targets at livewithoscar.com (so you know about when to sell TNA) and take the hedge off. Another thing I do is look at a ratio chart. Go to stockcharts.com and type in TZA:TNA and add your favorite indicators. The indicators will show you if TZA is overbought or oversold in relation to TNA. Try CCI6or7, its one of my favorites. Hope this helps.
    Lady gave you rep points, me too! Man do I have a lot to learn before I really dive in.

  18.  
  19. #20

    Join Date
    Dec 2007
    Posts
    906

    Default Re: Stops

    Simple Stop Loss Strategies
    A Thomas

    www.mutualfundmagic.com

    We have established why a safety stop order is a requirement for the successful investor. Now lets look at some of the simpler methods. There are 3 basic methods (and many more we can not discuss here) for stops that virtually anyone can master. These cannot be covered in detail here, but you can do further research on ones own.

    Any share, fund or Exchange Traded Fund (ETF) you buy you predict is going to go upward, but there is the chance that it may go in the other direction. The share you buy is $50 per security. Our numero uno thought should be how much am I willing to risk if I'm incorrect and that is called a mark down limit. Lets pick an arbitrary amount of $5. Thats 10%. If it goes downwards that is the maximum amount you should lose and you still have 90% of your spondoolicks remaining to find a better investment. When it goes upwards you can want to protect the surplus by moving the stop upwards.

    When an stock advances to $55. 00 our stop of 10% should be moved to $49. 50 that is 10% of $55. When it goes to $60 ones stop is now $54. Nothing complicated here. There have been many equities that gone from $20 to $250 and then downwards to $2. 00.

    As Ihave asserted before never buy anything unless it is going upwards. You add upward the closing premiums for the past 20 days and divide by 20. This should be done once each week and the number calculated is ones stop. The steeper the advance the shorter should be the number of days for the moving
    average. If you are lucky enough to have one of those skyrockets you might even be downwards to a 5DMA. Some big swinging dicks use a 50 day MA and other participants even a 200-day MA. Mutual funds lend themselves to the latter,

    Finding support and resistance pips requires a more classy approach. This is
    something you are going to have to study. There are many places on the Internet that have short explanations with examples of how to determine
    these ticks. It might rest for a while with a short upwards and downwards sideways pattern that forms before the following move further. Our stop should now be downwards at the point the recent upward move started .


    This article courtesy of http://www.traders101.com.
    -- Tom | My Trades

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