Thursday, March 2, 2017

Random thoughts: using stop order to protect profits

Recently, I ask my broker for options in my interface for advance orders. I also pestered SMOL a lot since it is more complicated than I thought.

I did read up a bit before that. It is simple concept, but the interface isn't. Basically to protect profits, u sell at a price lower than current price but it will not be activated until the market hit your trigger price. 

What I want to achieve with this? Actually YZJ and Venture already hit my target gains. I am very tempted to take profits. So I actually key in a lower price and if it got sold, so be it. But if it run, I can move the selling price higher every day. I manage to do that for yesterday so the profits for today is already higher than yesterday. 

That's the no-brainer part. 

Then when my acc is activated a week ago.

I goes like 

 

It's quite overwhelming.

I went online and understood what is FAK, FOK, agar agar know what is GTD GTM, but did not know the difference between day and GTD.

Then I go SMLL for "time in force" and "conditional"

Why is there a stop price and another price below. What the hell is market limit. 

I felt a bit pie say pestering SMOL so I ask my broker, his explanation made me more confuse only and he gave me a no. To call. Anyway the person at the no. She also not too sure when I prob further too. 

But in the end, it is still Smol that explained everything nicely and "understooded" ... I had wanted to treat him to a drink but someone beat me to It LOL. 

Thank you SMOL for your patience, and thank you ROLF, for the drink Muhahahahah 

20 comments:

  1. Wah. Chim. Shall go learn it one of these days

    ReplyDelete
    Replies
    1. Not very chin if u have a good mentor. Lol

      Delete
  2. Sillyinvestor,

    Anytime.

    My first stock trade was with UOB KayHian - using my father's remisier. I've since moved on to another local broker with lots of different platforms for different vehicles and different traders/investors.


    Something is not right when dealers can't explain STOP orders. Even pass your call to help desk... If he only knew how much you earn!

    Well, there's goes the opportunity to "educate" customers to trade more frequently to increase transaction commissions.


    Learning to protect profits is part of money management.

    Not bad right? Made more money while drinking coffee!

    Although today STI is giving back some of the gains yesterday ;)

    Unrealised profit is like the reflection of the moon in the lake...


    ReplyDelete
  3. Hi Smol,

    To be fair, I think he knows what it's all about, but I think he use another interface. He show me what "greater or equal " thingy that I dun see on my interface.

    When I told him I checked with a friend and got it figure out, and I will key in advance orders for my overseas trip, he ask me to call the no. To ensure I get what I intent to do. He does not seem to be confident

    Anyway LOL. 谋事在人 成事在天

    In 1 day, I experienced both that u warn me about.

    YZJ price got sold and then bounce up.

    Venture gap down so much that profits did not get "protected" lol

    No one can outsmart the market

    ReplyDelete
    Replies
    1. Sillyinvestor,

      Welcome to the world of craftsmanship!

      Where to place stops is an art by itself ;)

      One day you learn what a stop hunt is. Its where the pros target the stops placed by "bei kambings" and eat them for lunch ;)


      Keep a record of your experience with STOP orders. Only you will know whether using them will do more harm or good in the long run.


      Delete
    2. Yup. Smol

      What u say about tooclose easily hit, too far heart ache for evaporated profits, reasonate with me now. LOL

      NVM. this is still secondary stuff, the primary stuff is still choose the right stock and right time to buy. No entry skills, exit how power also no use

      Delete
    3. Also the frecking strong bounce of YZJ is making my heart ache too. Really like what u say, sold at lowest price of the day and watch the thing fly LOL

      Delete
  4. Hi SI,

    Wah seh, advanced order lol :) I only use poems, so can't help you. Personally I don't use stop order to protect profits. I just put in and sell and that's it, haha :)

    ReplyDelete
  5. LP,

    You reach the level of 无招胜有招,手中无剑,心中有剑。

    i still at 作贱自负! frecking set the stop so close, LOL. Lesson no.1 !! At see how YZJ cheong is painful

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  6. Know so much may not be good thing?
    I dunno how to key in stop sell also. WHahaha.

    Then ended up earn more ? Or lose more? Hahaa

    ReplyDelete
    Replies
    1. Hi Yeh,

      Nothing wrong with the tools of advance orders. What's wrong is me! Poor execution LOL. Nvm

      I shall get stronger !! LOL

      Delete
    2. Anyway Yeh,

      Dow cross 21000. Take profits if profits are good. With this sale of YZJ. I am more then 50% cash. Had Venture not gap down but sold. I would be 65% cash.

      Think you earning happily with tech stocks. 见好就收,收了别乱乱来

      Delete
    3. I think sti stil got a bit more chance leh.

      Delete
  7. How about clicking buy at a higher price than yesterday closing price wrongly and got out of problem when the selling price today gallop up above the bought price. A potential lose turned into a profit. HENG HENG.

    ReplyDelete
    Replies
    1. Blur sotong, your nick and my nick the same type, you blur and I silly.

      But your comment I really blur, not quite sure how it works. No worries. Profits is profits ... still Heng

      Delete
  8. "无招胜有招,手中无剑,心中有剑。"

    "One day you learn what a stop hunt is. Its where the pros target the stops placed by "bei kambings" and eat them for lunch ;)"


    Yes in that sense if you should place most types of market order mentally.

    (i wonder if everyone does that, hmmmmm... no market liu.)

    But i like placing limit order B or S.

    Sometimes, i even place crazy limit order with GTD specification.

    If i ever want to use trailing stop loss order i will use it as mental stop loss.

    Of course you must monitor the market quite closely to use this strategy.

    Nah i still prefer crazy limit order though i lose sometimes(aka did not get any deal lol).

    ReplyDelete
    Replies
    1. people who use limit orders should not regret what ever happens after the deal.

      That's the price you wanted to be done.

      No regret LOL!

      Delete
    2. Ya, u are right, how difference should it be a plain vanilla sell order right, some more u already sold 1 day later. Cannot complain. But newbie just like to KbKB

      W1 rule. Never lose money must cheer Liao

      Delete
  9. Stop Price is the price when you want your Conditional Trade to activate.
    Becoz you specify to be a Limit order, hence the 2nd Price is the Limit Price.

    Therefore if price drops to your Stop Price, your order will activate & the platform will try to sell your specified quantity of shares, but only if market price remains above the 2nd Limit Price.

    WARNING!!!
    By placing such Stop orders, you're advertising to the insiders, brokers & institutional traders what your "Cry Uncle" limit is. They often try to engineer quick price drops to trigger all these Stops, and then swoop in to scoop them up on the cheap.

    ReplyDelete
    Replies
    1. Hi Anon,

      Thanks for your feedback, that's what SMOL mean by stop hunt.

      Hmm... I will experience it a little more times before I decide what to do

      Delete