(02-24-2021, 10:00 PM)JaG4LyFe Wrote:

(02-24-2021, 09:54 PM)HURRICANE!!! Wrote: Thanks .... I was on hold for 30 min due to call volume at 7:30pm (and extended trading ends at 8pm).  Oh well.  If it tanks I can always look forward to my Yobe (taro) buy one get one deal from the Teal Deal Coupon booklet.  I want a lot but know I don't need much.

Set a trailing stop loss

Crazy, crazy, crazy.  

Man, trailing stop loss orders are a terrible idea.  If a stock is a good investment, you don't want a dip to trigger a sell, it'd be much better if a dip triggered a buy order. 

I remember the flash crash back in 2010, when the market took a sudden massive dip, and a lot of people who had stop loss orders got sold out of their positions at a huge loss.  Because they were selling automatically in a situation where everyone was a seller and no one was a buyer.   Then by the end of the day, the market had recovered.  These people had their holdings go poof, with big losses.  How stupid.   

Now imagine if these people had had trailing buy orders.  They could have made huge money that day. 

Think of this: when stocks take a sudden dip like that, it means there are many more sellers than buyers.  If  you try to sell your stock during a big dip, if you have set your stop loss order with a specific price, that sale is very unlikely to be filled.  Or, if you set your stop loss at market, you are selling into a situation where the price you finally get could be very low.  Because if you set your stop loss order at market price, then you are offering your stock AT ANY PRICE.  And it's automated.  You don't get to make that decision.

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