Entrepreneur
Kurra Bewarse Username: Entrepreneur
Post Number: 3136 Registered: 05-2011 Posted From: 65.35.45.47
Rating: N/A Votes: 0 | Posted on Wednesday, January 20, 2021 - 6:56 pm: | |
@Executor There is a technical stop loss and a theoretical stop loss. Technical stop loss is the stop order we place in the trading app. Theoretical stop loss is you position yourself that you don't lose your own money no matter what happens to the stock. Ideally we shouldn't ever have to use a technical stop loss unless you are daytrading(which is a must). I don't have a stop loss set up for even the penny stocks(very few) I own. I don't hold a penny stock overnight until it becomes a conviction buy. By the time it makes it to my PF, I would have made at least one-third of the position in daytrading and I initiate the position with that one-third. You keep adding other 2 installments on certain eventful negative days. You keep taking profits until at least 80% of your stock is house money. You should never consider that you made any money until it hits your target however long it takes. You don't give a shit even if the stock goes up 50% and then became zero. House money is not yours until it either reaches the target or it vanishes. If you are worried about losing your profits, that stock should have never made it to your PF. The minute it made it into your PF, it's like you adopted a kid.. you gotta keep him in your home until he becomes an adult. If you don't daytrade, obviously your first one-third will come from your pocket that you are willing to lose. So it's very very important how and when you make the first entry. You have to take the first one-third trade based on the charts and price action. If you don't know how to read these, take help from someone who knows. This strategy is not for folks who just buy bunch of stocks based on FOMO and trying to ride the momentum and get rid of it after making some profits. This is for folks who want to adopt a penny-kid into your PF-home after you are convinced that it has long term potential. also, you should never have to put a stop loss for regular stocks. Just sell it if you want to get rid of it or make room for a new stock. |