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Trailing Stop or other Stop loss orders for ETFs

Do you use resting stop loss orders on the ETFs you buy to preserve your gains? If so, how do you determine the margin for error to account for?



  • BB, from experience, you are looking for trouble. KISS is better.
  • If I have decided to sell, I may put a trailing stop.

    But, in general, putting and keeping stop-losses are risky. Anyone remember those flash-crashes that were happening frequently? Then they went away without explanation, just as they appeared out of the blue. Only in the BIG flash-crash, some orders were adjusted, but in the others, stop-loss users were badly whipsawed.
  • Thanks for the reminder of reality and my own experiences. May be I should get a tattoo for every negative experience!

    @yogibearbull, I forgot about those flash crashes. Is that we are in a low vol regime (quick dip buying) or PP really works to prevent flash crashes of indices?
  • Ya, I've used them a little but found over time just pick a price and put a limit order in. Trailing stops etc... have a way of triggering exactly before a 10% gain. :^)
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