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Stops for gold and silver

razzlerazzle Posts: 987 ✭✭✭
in Precious Metals
Stops
Markets (governments) can remain irrational longer than an investor can remain solvent.

Comments

  • mariner67mariner67 Posts: 2,746 ✭✭✭
    "The major advantage of using protective stops is that, before a trade is initiated, you have a pretty good idea of where you will be getting out of the trade if it's a loser."

    Others know a lot more about this than I do but I seem to recall many instances of stop loss orders getting crushed in a steep downside move whereby the time the stop loss order is able to be executed the price ends up WAY below the targeted sell price due to the ultrafast moves by the programed computer traders with their nanosecond fast trades.
    I believe this means you can get trapped and crushed by a rapidly moving downward market despite your stop loss order.
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  • s4nys4ny Posts: 1,569 ✭✭✭
    I am a professional securities trader and I never use or recommend stop orders.
  • razzlerazzle Posts: 987 ✭✭✭
    It has been a lot of years since I did options, but, when I did, I used stops. I think these super-large batch automated options players must use them constantly, but that is just a guess.
    Markets (governments) can remain irrational longer than an investor can remain solvent.
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