Are stop loss orders reliable?

[Max7771]

If so I don’t see why people don’t just put 90% of their money on the market and set low stop losses your money could only go up?

[Destor]

#1 - When a stop loss order is triggered, it sells at the next available price and that price can be significantly lower if the volatility is there
#2 - The big boys engage in stop hunting and running stops, where they will trigger stop losses at price points and then laugh as the price rallies again


IMO it's smarter to monitor movements and average down if prices drop below your basis, no need to play with all this stuff

[roughinhouse]

yep its been working for me. When im up 5-10% i put a stop loss so if it does drop at least i still take profit + I can usually buy at a lower price if i want. Also instead of yoloing in a on a stock I now check its support and resistance and buy it near its support. I place a stop loss below the support so i minimize my loss (usually when the price breaks support it drops hard). e.g: Fubo had a strong support around $20.50. I bought Fubo at $21. Stop loss triggered and its trading at around $18 now so that stop loss saved me a ton of money. I can now buy back in right now if i want for a much lower price.

NOTE: Use a STOP LIMIT order and NEVER use market orders. A normal stop order is a market order which you should never use.

TIP: Remember when a stock goes down YOU'VE ALREADY LOST THAT MONEY theoretically.

[VinnyPazRules]

Stocks go up and down to much so your stop loss will always be triggered then the stock will go up to the moon and you will be out.

[VinnyPazRules]

#1 - When a stop loss order is triggered, it sells at the next available price and that price can be significantly lower if the volatility is there
#2 - The big boys engage in stop hunting and running stops, where they will trigger stop losses at price points and then laugh as the price rallies again


IMO it's smarter to monitor movements and average down if prices drop below your basis, no need to play with all this stuff

How about the buy 50 stocks check it in 5 years strategy?

[Destor]

How about the buy 50 stocks check it in 5 years strategy?

Yup 100% but I'm entirely a long-term value investor, so that's my strategy by default