Most texts and experts suggest a stop-loss of 10%, so that if your stock falls more than 10%, you sell immediately. I was wondering about this for a long time, i mean we could simply average out and avoid the losses, right? But again, doing so will not really be the most beneficial option. Say i have UBC at 30. I keep averaging this and actually absorbing losses. Eventually my exposure to UBC is going to go up, and the profit i gain is low ( mabe just break even)...a better option would be to realize the loss, sell out and mabe go for BLUE or FLCH at a low price.. Coz when they shoot up, the WHOLE amount it shoots up will be my profit....If i was still holding on to UBC, a considerable amount of the shoot up would be to cover my losses of purchasing at 30.
Any one actively using stop losses?
Are there any software supporting it? CDAX does not.
* The mentioned stocks are simply to make a point. As an example only