i had a chat with an fm member on ym just this afternoon .. she was asking me about cutting losses (stop-loss orders/trailing stops).. here was our ym exchange ...
fm member: pwede ask kung paano ka mag cut sa stock? sa mjor support or pag break yong ilang days na support if ok lang share
me: ok ... pasok ako initial position .. pag change ng direction ng macd ... which means nag bottom na sya
me: whatever the bottom is .. initial cutloss (stop-loss) ko just lower than that bottom
me: if mali pasok ko .. the price will go down ..
me: most likely tatamaan cutloss (stop-loss) ko ... therefore i sell .. end of story
me: pero kung tumaas yung price .. adjust ko cutloss (stop-loss) ko pataas .. trailing stop na yun kasi profit na ako .. hindi na cutloss (stop-loss)
me: so .. either below next major support .. or below next psych support
me: adjust lang lagi pataas yung stop if the price advances
me: and since stop ang gamit ko .. wala ako target price .. ill stay in the trade as long as my stop is not hit
fm member: example pumasok ako sa gitna na ng uptrend saan ako pwede mag cut?
me: hahahaha ... mahirap yan .. kaya hindi ako pumapasok sa gitna .. kasi mas malaki possibility ma whipsaw
me: as much as possible .. i enter at the bottom
me: yung risk reward is infinite
me: if sa gitna ka papasok .. the risk reward is 50% .. parang toss coin na lang yan
me: kaya madalas maipit mga tao .. above the 50% ng uptrend na sila pumapasok .. usually nga sa top na
me: makikita naman sa chart yun
me: kung stupid ang tao papasok sa taas .. im sure stupid sya na hindi sya mag cut loss
fm member: example yong agi nag down na cya pero konte lang tapos mukha start uli akyat macd kaya ok na uli kahit na hindi cya pa neg ang macd?
me: immidiate bottom nya 23.75 ... so cutloss (stop-loss) should be a little lower ... 23.70 or 23.50
me: if nung friday ka pumasok .. support is 24.20 ... so cutloss (stop-loss) is below 24.20
me: nagclose sa 25 .. so if it closes higher .. move the stop sa 25 .. mga 24.90
fm member: tnx ... dami ko natuto sa iyo and u r so generous na magturo ngayon lang ako natuto sa aking senior year na. haha at yon ay dahil sa iyo na wala pang bayad. tnx again
me: anytime ...
me: paper trade mo muna lahat ... bago mo i apply with real money
me: madali lang trading .. kaya lang mahirap .. gambler mga tao .. papasok na yung risk e malaki
me: nasa chart naman lahat makikita
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