A stop loss means get me out of this position if this price is hit. It basically become a market order once that price is hit.
A stop limit means get me out at this price "only".
So if the price of your ETF in this example gaps open down and drops below your stop price, the stop loss will sell it and the stop limit will not until it moves back up to your limit price.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Emotions should never play a role in one's investing strategy!
No to Greed...No to Fear!
http://share.robinhood.com/mariloc1
Emotions should never play a role in one's investing strategy!
No to Greed...No to Fear!
http://share.robinhood.com/mariloc1
The algo was based upon historical EOD data, so it only had knowledge of the O, H, L, and C.
If it forecasted an UP day, it would be calculated from the close, to the next-day close; so the optimum entry (and exit) would be near the closing price.
I've recently added intraday data to the algo. It has more flexibility now.
[COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]
Learned from my mistakes in ETF trading. It was expensive - tax wise. I didn't know about "Wash Sale Rule." When I received my 1099 from Robinhood, there was a column "Wash Sales Disallowed." It hurt. I cannot deduct my losses from my gains, I ended paying a lot more in taxes.
Newbies in ETF trading, read:
Wash-Sale Rule
Emotions should never play a role in one's investing strategy!
No to Greed...No to Fear!
http://share.robinhood.com/mariloc1
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