Menu Close

Sell Stop & Trail Stop

QuestionsCategory: QuestionsSell Stop & Trail Stop
Essam Lababidi asked 4 years ago

Dear Pat,
I appreciate your kind support & advice regarding below questions:
1) Legend investors (Minervini, Zanger) are using mental stops so that won’t be hit by their brokers, also other legend investor (David Ryan) put on daily morning the stop loss for each stock valid for today (not GTC), since you have a long experience with Interactive Brokers what you recommend to do regarding stop loss?
2) We sell 20% position if stock falls below 8 EMA, suppose stock SMA daily values are rising & falling like (80, 81, 83, 79, 77, 80 respectively) accordingly the sell stop will be (79.5, 80.5, 82.5, 82.5, 82.5, 82.5 respectively)? Pls. confirm?
3) Since the position is pyramid using (50%, 30%, 20%), accordingly does the stop loss will be also staggered using its individual entry price or using the average buy price of (50%, 30%, 20%)?
4) If stock is gapped-up on market open due to earnings release or news, then I should put stop loss on the 1st bar low of 15/30/60 min, which timeframe I have to to use? how many cents below low price should be the stop loss?
5) Stop loss for any stock should be (3%, 4%, 5%, 7% or 8% from initial buy price) or (low of 1st bar of 15/30/60 min) min how many cents?
6) Max stocks are moving fast, what is best timeframe to use (15/30/60 min or daily) for trailing stops & selling into strength?
7) Once the buy order is filled, I have to sell based on following:
71.) You mentioned to set a “contingent 1st sell stop” of 50% position @ buy price (+10 cents)”, in this case does the sell order will be filled immediately?
7.2) To sell the “Remaining 50% position = 2nd sell order” which timeframe I should use & after how many minutes I have to place the 2nd sell order”?
7.3) Next days I have to raise the stop loss which time frame to be used?
7.4) Do above is applicable for both breakout and normal trades (which not gapped-up)?
Regards,
Essam

1 Answers
Best Answer
Avatar photoOwen Staff answered 4 years ago

Hi Essam,
Video from Patrick:
https://youtu.be/COHTa_mveNM