Stephen Rager asked 3 years ago
Since we make multiple buys with stocks at different prices. How do your recommend setting the stop losses.
Ie. 100 shares, 50/30/20 with a FIFO with one trailing stop off the cost basis. Or FIFO, set for each lot, 3 stop losses for each lot purchased? It would seem the FIFO method with each lot of shares would minimize potential losses in a quick downturn if you have been buying add on's.
Thank you,
Stephen Rager
2 Answers
Owen Staff answered 3 years ago
Hi Stephen,
I found this video from a question Eric asked a short while ago; I think it'll help:
https://missionwinners.com/question/what-is-your-preferred-cost-basis-method/
Owen Staff answered 3 years ago
You'll hear Pat say, "If a stock breaks down after you've bought an Add-on (or Pyramid) number of shares, sell those shares." If one were to follow that advice, a stop would be placed for the number of shares purchased at each buy point.
Stephen Rager
replied 3 years ago Yes, thank you.
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