What is the ideal cut loss percentage?
#1
Hi guys,

I'm still trying to learn what is an ideal cut/stop loss percentage for me. Since I am not trading big amounts just yet - and I am entering a stock in batches, I am still (for some reason) ok with having a running loss of lets say 20%. But I know that it is not an ideal practice in the longer run.

Could you please share what your cut loss percentages are? And what made you choose that particular value?

thank you
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#2
-5.00% but depends really on the person...also, it depends on the kinds of stock you have bought yourself into fossil...Blues can be held for a long time, some people just keep on adding and adding capital on a losing Blues, let's say part of their monthly salary...even on a -20% loss, they keep on adding, it's because they are value investors and they look at Blue Chip stocks as long term investments...my neighbor for instance, a San Miguel employee, has bought shares above P150 before th SMC share offer, and continues to buy only SMC shares after the share offer...are you that kind of a person fossil?

...day traders, on the other hand, have to keep their losses at a minimal, -5.00% is already a cutloss point for many them, for some even smaller, you know what I mean whe I say day traders right fossil? these are the kinds that trade stocks as fast as they could, doesn't delineate which stock is blues, second tier or third liners and bazuras, they just buy on opportunities and on short term technicals

...either of the two, long term investor or short term trader, there has to be a cutloss point in place...if you're a newbie, it would be hard at first because you don't know yet the next stock to invest into that would recoup that loss...if this would be the case, then i suggest, become a voracious learner of the market, learn everything that you could, so that the next time you make that cutloss, you'll know where to invest next where you chances of earning is higher...

..I can't say the same for the long term investor, because time and again, my neighbor always proves me wrong Big Grin his being in that long position is envious, no anxiety, no sleepless nights, no problem what so ever, he just keeps on accumulating Big Grin

...good evening fossil and to all


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#3
thanks much Sir Ollie. I don't think day trading suits me though. I'd like to position trade (be it 1st, 2nd, or 3rd liners). that's why I enter in trenches. Big Grin

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#4
...baka naman "enter in tranches" ibig mo sabihin Big Grin diba yung trench eh sa gyera yun? mga hukay na pinagtataguan ng mga sundalo? haha Big Grin


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#5
5% din ako. pero kung blues, i have a tendency to keep for a longer period - MEG for example, naipit ako ng 2 months, if i remember correctly, -9-11% ako at one point nung nag 1.9X levels sya. i held it kasi undervalued sya fundamentally, atsaka tuwing ibebenta ko sya, sinasabi ng broker ko na wag ko muna benta. nakawala din at a small profit.
buy high, sell higher!

stock market abbreviations (for newbies)
http://www.stockmarketpilipinas.com/post...g#pid11738

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."


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#6
(08-31-2011, 04:09 PM)Ollie Wrote: ...baka naman "enter in tranches" ibig mo sabihin Big Grin diba yung trench eh sa gyera yun? mga hukay na pinagtataguan ng mga sundalo? haha Big Grin

hahahaha! my bad Big Grin thanks for correcting me Big Grin
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#7
my cut loss point for basura stocks -3%, pag blues usually i average down hehe safe naman kasi..
the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.
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#8
thanks sir glen and mod aiu. tight stops ah. hmm. interesting
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#9
minsan i give a little leeway. kung very promising naman ang chart at around max 1% lang ang fluctuations keep ko na minsan. pag itchy fingers, lumalaki losses dahil sa dami ng commission e.
buy high, sell higher!

stock market abbreviations (for newbies)
http://www.stockmarketpilipinas.com/post...g#pid11738

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."


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