Questions regarding Stop Losses and Risk Management


Many stop loss order related questions are answered in 2 to 3 days, but please allow up to 1 to 2 weeks occasionally. We receive large volumes of email, so please don't hesitate to re-send your message if there is no answer initially:
Q.
What is a stop loss order?
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What types of orders are available?
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What is the meaning of good till cancelled, good till end of day and good till date/time?
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How do you place an order for a spreadbet?
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How does a forex stop loss order actually work?
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Are stop losses really needed?
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A lot of people stress stop losses - but if that was all there was to it surely more people would win?
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Where do you place the stop loss?
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I was wondering where you set your stop losses. I've been setting mine 10% below for the trigger point...
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But how do you decide the stop loss value on a share?
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What do I need to do to make myself not touch my stop loss order levels once set?
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How do you avoid getting continually stopped out?
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What is a 'stop on close' order?
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What is a stop limit order?
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What's the difference between a Stop Loss and a Limit Order?
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What's the difference between Order and OTO?
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What is an OCO Order?
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How does a Contingent Order work?
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I'm trying to place an order out-of-hours but my spread betting company will not let me place the buy order at the price I want to!
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Can I make adjustments to the stop levels out-of-hours?
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It is rather impossible to implement the SB stop rules on the IG platform, as IG restricts the stop levels to a minimum 5%...
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Why do IG Index impose maximum bet sizes at each level?
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What is a guaranteed stop loss order or controlled risk bet?
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What's best using a guaranteed stop loss or ordinary?
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How can I cover the risk of a takeover when shorting without using a Guaranteed Stop Loss Order?
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How much do Guaranteed Stop Loss orders cost?
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Should I be using Guaranteed Stop Losses?
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But how secure are guaranteed stop loss orders in reality? Won't I still be slipped out in a 'force majeure' scenario?
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What is the catch with using Guaranteed Stop Loss Orders?
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Is there a company out there that offers guaranteed stops on all markets?
Q.
What is a Trailing Stop Loss?
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I use IG Index but can't see any trailing stop loss option?
Q.
Which platform would allow me to have trailing stop losses on a spreadbetting portfolio?
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I have a question in relation to protecting portfolio profit...apart from the stop loss, and trailing stop loss strategy, are there any other methods for locking in profits without hurting the chance of further gains?
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I get into a trade, the trade goes in my favour and then the price comes back, if the price here comes back, would it be best sell out (to preserve capital) at b/e or let the price go to a couple of % below?
Q.
But are trailing stops useful? What's your opinion on trailing stop orders?
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In setting trailing stops for downside protection do you have any advice of a percentage and/or methodology that works well for them in regard to getting stopped out in a market blip?
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When does one start to trail one's stop? What is your strategy for managing a winning trade?
Q.
I went to move one of my GSLO's online after the market had closed, only to get a message on the screen that I could not move my stop closer to the market price unless the market was trading. I'm just wondering why?
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I'm confused - how are stops not a form of protection?
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When is the use of stop losses not appropriate?
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Is it a good idea to hold on to losing short-term positions and trade for a longer timeframe?
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What are the limitations of stop losses?
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I trade the news but the broker is slipping my stop orders!!
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Wouldn't a spread betting broker be tempted to spike quotes to trigger stops then move the quotes back to where the market was?
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But since they control the system, don't they have the opportunity to cheat?
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My stop losses keep getting taken out when the price hasn't breached my stop levels...
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But don't stop loss orders stop you from making future profits?
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'Problem is that sometimes I end up with stocks that go in the 'wrong direction' for a long time as I don't like exiting with a loss...'
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'Sitting with 170k shares at average 68p. Sold nearly everything else to add last week to bring my average down to 68p'
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'But if I keep holding eventually when the market turns my losing positions will become winning ones'
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'Yes, but for a stock that has dropped from $10 to $5 isn't there a bigger chance of upside than downside?'
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'I've set a target of making 50k on a simulator account before losing anymore of my cash!'
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'Have been trading the FTSE and Dow at £5 and £100 per point...'
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I like your comments about trimming your positions. One thing I ask is how do you exit in thirds on a spreadbet?
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How do you cope with a poor run of losses?
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The index futures are moving too much - I'm struggling to make money!
Q.
I made an index bet for £200 per point thinking my stop-loss was effectively my deposit/credit limit...

 ...Continues here - Questions about Successful Traders and Money Management

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