stops
easy question, difficult to answer
where to set them depends
let's assume the F/A checks out, otherwise no stop, just sell
next look at various types of T/A to get a solid feel for support areas
for a long term core stock with say a 2-5 year expected holding period, maybe set it at the 200-90 day moving average? or just under logical support
for 6 month to 2 year holds, 90-60 day moving average, or just under logical support
for 2 week to 3 months, 30-15 day ma, or just under logical support
if a stock is getting very close to resistance or your price target maybe a tick under yesterdays low
if you are thinking of selling maybe 1/8-1/4 under the current bid
I'd rather set the stop at a logical price but many say set it at -15% from your buy price
I'm more inclined to set it at about -8% or so if that price makes any sense
if you are up on a stock set it a tick or so above your entry, never let a profit turn into a loss
never lose more than 2% of your total equity on any one stock, so set accordingly, if 2% is not near logical support then set the stop higher, or don't buy the stock
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>>The question is why are we so hard headed as to not use them, and I'm the world's worst.
easy answer
because of the word hope combined with the inability to admit a mistake
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>>>So as you have said previously, set MENTAL stops on NASDAQ stocks, because the mm's screw you, but set REAL stops on NYSE and AMEX stocks
a lot of people will screw you (except those you want to do so ggg)
many brokers will not take stops on 4 letter stocks
those that do vary the trigger between a bid hit or a print
but a stop always becomes a market order when triggered, and market orders are death especially on the nasdaq
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a good way to get in the habit of using stops is to pick the sell stop price before you buy (if you can not find a sensible stop price don't buy) and then put one in the instant your buy order is filled, try that on your next 10 buys
PS
do as I say and not as I do and you will find your losses will diminish over time
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