Ask Colin

STOPS

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  1. I am not sure if you have written about this. Whats your opinion on capital preservation with these ETFs, ETPs and Index Funds? Would you set stops like with individual shares?
  2. How do you deal with a stop-loss violation after a results announcement?
  3. Have you been concerned recently where shares have risen considerably and the distance from the hard stop is great?
  4. The real problem I am having is trying work out where to set a stop-loss for skyrocketing stocks where there has been little sign of a plateau or minor downturn.
  5. The prices of some of my stock have moved well above my stop. What should I do?
  6. Should I set my trailing stops to sell out on a 10% drop from the previous day’s closing price?
  7. What do you do if a correction in the market seems imminent?
  8. If my share price goes through my stop during the week should I exit or should I base my exit on the close of the week?
  9. Why did Commsec not execute my stop order?
  10. In placing your stops, what is a trough?
  11. What you do if you miss a sell stop signal and by the time you pick it up the share has moved up out of danger?
  12. Would you ever consider selling everything, and not buying anything again until the chart of the market showed positive signs of recovery?
  13. If a stock goes ex-dividend, do you give some tolerance to its stop loss point?
  14. Should I raise my stops in a market decline (29 June 2015)?
  15. With $50,000 capital, when would it not be feasible to buy a share costing $35.00?
  16. When looking at where to situate my stops on a weekly bar chart do I use the lows or the closing prices for the week or weeks?
  17. Do you use automatic stop losses?
  18. How should I set stops for stocks that have risen very fast in a short time?
  19. Are there times when we have to risk more than 2%?
  20. My stop at 2% of capital is $2000, which is 66% of the investment. Isn't this too high?
  21. How do you react to stocks going through your stop when they go ex-dividend?
  22. How do you execute stops in volatile markets where there is low volume?
  23. Why don't you use automatic stop orders?
  24. Is your sell stop triggered by an intraday violation of your stop level or by a close below your stop level?
  25. Is there a stockbroker that accepts stop orders for shares?
  26. If a share drops suddenly with no chance to exercise my stop loss, should I sell the next day, or wait for a rally, closing the gap, and then sell?
  27. When you sell a position, do you normally do it by calling your broker to do the trade or do you do it online?
  28. You talked about a parabolic stop that you use to set you stop profit when a stock rockets up. Can you please explain how this is executed?
  29. A book suggests stop-losses be set 5% below support for US stocks with a beta of 1 and 10% below support for US stocks with a beta of 2. Does this apply in Australia?
  30. I am concerned about giving back a lot or all of my profit on good moves because the logical stop-loss is so far away. Any thoughts?
  31. I have heard that a portfolio should have a stop-loss at 2%. What do you recommend?
  32. In December 2003, I bought Ammtec (AEC) at $1.56. It climbed to $1.85, but then fell through my stop. Can you give me some pointers? (Full question is in the answer file)
  33. How do I avoid being shaken out when good stocks suffer sharp falls and then recover?
  34. Do you place stop-loss orders with your broker?
  35. I sold shares that later rose. The missed gains would have exceeded losses on the rest. Should I have just held them all?
  36. Do you use a broker who takes stop loss orders?
  37. As an example, Boral (BLD) has been going up for a long time with no significant corrections. How does a long term investor pick a stop-loss level in such a situation?
  38. If a stock falls one cent below your stop and closes above it is this a SIGNIFICANT trough?
  39. I use Kagi charts drawn on closing prices to place my stops. Is this where your stops are?
  40. You place your stops below SIGNIFICANT lows. How do you define SIGNIFICANT?
  41. When setting an initial stop-loss level under an accumulation or consolidation area, should it be under the lowest low or the last trough?
  42. Is it best to sell immediately a stop-loss is hit or to wait for a rally?
  43. Why don't Australian brokers accept stop-loss orders?
  44. How long should a moving average be if used for a stop-loss level?
  45. I read in an article to place a stop order 10 ticks above a high. What do
  46. When a stock goes ex-dividend, do you adjust your stop-loss?
  47. Should stops be executed during the day, or the next day (end of day data)?
  48. Do you take your stop-loss from the close of the day or the low?
  49. If your stop-loss or protect profit stop is hit during a day, but the market closes above your stop, do you still sell the next day?
  50. If many investors set their stop-loss at the same price and there is a profit warning, how do we get out if everyone is trying to sell?
  51. Is your stop-loss always 2% below the last support level?
  52. Is it better to sell when a stop-loss is hit, or wait to sell into the first rally?
  53. When setting a stop-loss below the last significant trough in an uptrend, do you ignore an extreme spike down?
  54. To deal with high market risk, I have halved my amount risked per trade. Now I often cannot buy sensible amounts. How do you deal with that?
  55. In Trade Your Way to Financial Freedom, Van Tharp suggests a stop that is twice normal daily volatility in a addition to you long term stop. Is it necessary?
  56. When I paper trade futures with a 10-point stop-loss and small capital it is OK, but not when I actually trade. Can you help?
  57. How do I choose the appropriate retracement for placing my stop-loss?
  58. What should trigger stops on weekly charts?
  59. Should I switch to an online broker for their live stops facility?
  60. Questions on the Trendlines column in Shares magazine December 2001 (complex question)
  61. Should I have special stop rules for large sudden market falls? 
  62. How should stops work on downward breakouts where there is no prior trend?
  63. How do you feel about setting very tight initial stops?
  64. Can you suggest an Internet broker or CHEAP full service broker who provides a buy/sell on stop service for a trader whose time frame is weeks to months?
  65. Do you use automated stop alerts?
  66. Where should stops go if buying an upward breakout from a trading range?
  67. Do you use automatic stops with your online broker?
  68. I have a problem with PTD because the chart says I should sell, but the fundamentals look promising. What should I do?
  69. In determining the break in an uptrend, should I use a 5% stop, or daily/weekly moving average cross over?
  70. What methods do you use for getting out of a stock if its rising trend fails?
  71. Which one indicator is best to identify strongly trending markets?
  72. What is your trading method's 'edge'?
  73. Do you ever use a percentage stop-loss because your normal stop-loss is too far away from the current price?
  74. How do you set your stop-loss?