A couple of newbie questions regarding orders.

[Dee-eight]

I'm still in study mode for trading, but I think I have a grasp of the basics at least. I would like to be absolutely certain of the mechanics of trading before I even consider real dollar trading, though.

When I buy XYZ stock and set upper and lower limits, if the stoploss is triggered, does the other order automatically cancel? I would assume it does, but better to be certain than to assume.

Trailing stops follow your shares upward at a set percentage, as I understand it. This would indicate to me that as a share price rises, the trailing stop moves closer to the share price in terms of dollars and cents. Also, a trailing stop never moves downward, correct?

If that is the case, use of a trailing stop without a profit taking limit should be a good tool for letting profits run.

Last question: If I decide to tighten up a stop loss, say from 8% to 5%, should I should set the tighter stop before I cancel the 8%, just in case something cataclysmic happens before the second order is entered?

Thanks in advance.

[gijoe9]

I do not know the answer to the first question but yes to the second

[Dee-eight]

Thanks, Joe! I'm moving ahead with a test strategy in the simulator. I've set stops for almost every position, save for my big newbie mistake. I'm going to leave that one there as an object lesson for myself

Since there's no trailing stop available on the sim, I'm going to try to keep all my stops moving upward with advances in 2% increments. It will be kind of laborious, but I hope the excercise will give me some practice with trailing stops.

[gijoe9]

Originally Posted by Dee-eight

Thanks, Joe! I'm moving ahead with a test strategy in the simulator. I've set stops for almost every position, save for my big newbie mistake. I'm going to leave that one there as an object lesson for myself

Since there's no trailing stop available on the sim, I'm going to try to keep all my stops moving upward with advances in 2% increments. It will be kind of laborious, but I hope the excercise will give me some practice with trailing stops.

You are welcome for the help.
This level of involvment in the trailing stoploss entered by hand will keep you up to the moment on your portfolio and when you are enthusiastic that is good. I find that I will set some stops and limits on the shares I hold in the sim but not all of them. Of course I am more of a buy and hold kind of guy. I am ok not seeing my portfolio for weeks at a time if I have to. (not Falkin IV though)

[Dee-eight]

I've tightened up some stops in the 1st timers competition, and it wasn't too bad as far as time and effort. I haven't locked in any profits yet, but I'm whittling away at the potential losses nicely

I picked up 750 sim shares of PSS today on an insider tip (my wife works for them), and got a 1.18% jump in the first session. If things keep up like this, in 300 years, I'll be a millionaire!

[Stocktrading101]

lol, excellent call David; I agree 110% with this patience pays of strategy. Make sure to update us every 50 years or so and let us know how the company is doing .

[gijoe9]

Originally Posted by Stocktrading101

lol, excellent call David; I agree 110% with this patience pays of strategy. Make sure to update us every 50 years or so and let us know how the company is doing .

Read this a while ago and still giggling

[Dee-eight]

It looks like I can cut a century off my timeline to wealth! PSS is up 5%+ from my book value.

I tightened up stops again after the market closed, and I'm very close to locking in some profits. I suspect that a true trailing stop would have done that in one or two positions, but I had to go to work before the market closed and couldn't stay on top of things. I also moved up a spot or two in the Falkin neverending comp This is getting to be more fun all the time!