Monday, October 19, 2009

Set Stop Loss!

I was extremely bullish in the last post. But I forgot to reiterate, remember to set stop loss!

For me, my stop loss is set at STI 2665 (Around the index prior to the mini rally. i.e on the 13th Oct) So there is some room for the index to bounce around.

This is because I feel that 2700 is a psychological line! Do remember that support and resistance lines are not exact, but it is a region where such support/resistance is felt. So you must always give a little more space.

But do keep to the limit that you set! And no give yourself more 'space' in an event the stock moves against you.


Financial Freedom said...

Can I check how do you set your stop loss?

Is it through online trading system or you call your broker to tell him?

ntuchartist said...

There are ways like what you mentioned. But I do it manually because sometimes I will give a little allowance to my stop loss or take profit limit for WITHIN the day. Depending on the momentum of the market.


Never been a big fan of stop loss orders. Unless their for exchange traded funds.