New to investing - a question on stop loss orders

mmortal03

legendary

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Merit: 1011

Quote from: San1ty on May 28, 2013, 04:42:55 AM

Serious traders often find stop losses to rather be start losses.
Instead use a strategy on a time-frame that works for you and stick with that as your entry / exit strategy.

These would seem to not necessarily be mutually exclusive, though...

San1ty

sr. member

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Merit: 250

Serious traders often find stop losses to rather be start losses.
Instead use a strategy on a time-frame that works for you and stick with that as your entry / exit strategy.

NewLiberty

legendary

Activity: 1204

Merit: 1002

Gresham's Lawyer

For stocks with a low beta you can keep your stocks pretty tight, for something high beta (lots of volitility) like Bitcoin, you will likely get stopped out more often than you would like to be unless you want to be actively trading.

mmortal03

legendary

Activity: 1762

Merit: 1011

Even better would be something like this: https://bitcointalk.org/index.php?PHPSESSID=uqt7ne12f8ri6clq777s1rpma4&topic=149689.0

JRam

newbie

Activity: 31

Merit: 0

Quote from: Dargo on May 09, 2013, 11:03:40 PM

Your account will be funded with play money so you can try it out. The way trailing stop loss orders work is that you set a "stop offset" (either in absolute price, or a percentage) and a market sell order will trigger once price falls by the stop offset amount. For example, if you set a stop offset of 5%, the market sell won't trigger until price falls by 5%. Kraken should go live within two weeks, possibly next week. Note that your beta account will be wiped at launch, so you would have to open a new account for real trading.

Disclosure: I work for kraken.com (Payward), as vouched for here

https://bitcointalksearch.org/topic/faq-suggestions-for-new-exchange-krakencom-192104

Yes! This function is exactly what I'm looking for as I'm not able to watch my investments 24/7. I'll def take a look at Kraken for this convenient trading feature.

Dargo

legendary

Activity: 1820

Merit: 1000

Another exchange that will offer stop loss orders (and many other order types) is kraken.com. Kraken is in open beta right now, so if you want to play around with stop loss orders to get the hang of it, you can sign up for an account here

beta.kraken.com

Your account will be funded with play money so you can try it out. The way trailing stop loss orders work is that you set a "stop offset" (either in absolute price, or a percentage) and a market sell order will trigger once price falls by the stop offset amount. For example, if you set a stop offset of 5%, the market sell won't trigger until price falls by 5%. Kraken should go live within two weeks, possibly next week. Note that your beta account will be wiped at launch, so you would have to open a new account for real trading.

Disclosure: I work for kraken.com (Payward), as vouched for here

https://bitcointalksearch.org/topic/faq-suggestions-for-new-exchange-krakencom-192104

JRam

newbie

Activity: 31

Merit: 0

Thank you guys, I'll definitely take a look at Bitfinex and Camp BX. These trailing stop loss orders seems like something I would use a lot if I'm not able to constantly monitor my investments. I'm surprised that the current exchanges like Mt. Gox doesn't already have these types of advance trading function as they seem very convenient.

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

Quote from: JRam on May 09, 2013, 02:24:38 PM

Does any exchanges offer this function?

No market exchanges in which you are buying or selling bitcoins currently offer this.

It has been something discussed for years though. Camp BX's site has mentioned them since its June 2011 launch, for example.

unclescrooge

hero member

Activity: 868

Merit: 1000

Hello,

Stop orders do sell your bitcoins automatically when price decline under your set point. The trailing function allow this set price to follow the ticker price when it goes up (a way to "lock-in" profits).

However, stop orders behave like market orders when they are triggered, so there is no guarantee of the price at which they will be executed (in a crashing market becoming very illiquid, you might have some bad surprises).

I could suggest Bitfinex.com as an exchange proposing stop orders (disclosure: It's my exchange

)

Raphael

JRam

newbie

Activity: 31

Merit: 0

Would a trailing stop loss order automatically sell your position when your investment has declined by a percentage? I've been reading up about stop loss orders and just want some clarification.

Does any exchanges offer this function? I use Mt. Gox and it definitely doesn't offer stop loss orders.

Topic: New to investing - a question on stop loss orders (Read 1475 times)