stop loss

big_peachy

Ok guys please dont shoot me down in flames.I bought a shares in the Tanfield group on Mon when they seened to be to good buy and on the up.Now am taking a hit on these and they seem to be going South more and more.Silly question now.If i lose all my stake in this share and lets say it climbs again in the next few weeks and months am i back in profit.

thrupence

big_peachy wrote: »

Ok guys please dont shoot me down in flames.I bought a shares in the Tanfield group on Mon when they seened to be to good buy and on the up.Now am taking a hit on these and they seem to be going South more and more.Silly question now.If i lose all my stake in this share and lets say it climbs again in the next few weeks and months am i back in profit.

Sounds like you're spreadbetting rather than buying shares?

But either way if your stop loss kicks in then you've closed your position, and you won't benefit from any subsequent increase in the share price.

You'd have to buy back in again or open a new position in spreadbetting.

But you shouldn't really be spreadbetting if you're not totally on top of your game.

big_peachy

Thanks for the reply.Am not spread betting .Just bought the share that was on the up/Am learning everyday though.So am in at 10.88 the share is now 8.50 and showing a loss on my portfollio.If they drop more in the red and my investment goes to zero.Am i out or still in

Thanks

Fairwinds

big_peachy wrote: »

If they drop more in the red and my investment goes to zero.Am i out or still in

Thanks

You are still in - you hold a qty of shares these will be worth qty X market price untill you sell them.
They are likely to always have some value unless the company go bust

big_peachy

Thanks Gordon i fully understand now.pS /imho Tsb are going to take a hit on Mon with the bad news they had on Fri.If they drop to 40p am in.Think it takes a lot if heat of R.B.S watch them go

gozomark

big_peachy wrote: »

Thanks Gordon i fully understand now.pS /imho Tsb are going to take a hit on Mon with the bad news they had on Fri.If they drop to 40p am in.Think it takes a lot if heat of R.B.S watch them go

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big_peachy

gozomark wrote: »

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Here we go again another keyboard junkie.You wana say something say it,

gozomark

whats a keyboard junkie ?
what do TSB and RBS have to do with this discussion ?
actually, whats any of this got to do with stop losses ?

big_peachy

Goz

I was asking for some info and got it from Gordon,I continued the thread with what i though about about bank shares .Ok am on the wrong thread.Stop loss was just asking about a share and about the ifs and buts around it,Am new to this and its a big learning curve for me.Keyboard junkie some one who posts ?????like you did and we are neither here or there what your talking about,Its a complete waste of time and effort on this cracking board on your behalf to post this.i Love this board its very good for tips and the posts on it great for a rookie like me

wabbits

Hi Big Peachy,

I'm pretty new to investing myself....however I think above all else you must protect your capital invested.

In other words at some point you must decide to sell if it is clear that the shares are 'tanking' (ie plummeting).

I normally have a stop loss a little lower than the support level of the share (the lowest level the shares have gone to in recent weeks).

Better to come out with a small loss than watch the shares gradually dive, then wish I had sold them....I put it down to experience/admit I made a mistake then crack on with looking for something better....have done this a few times recently!! i personally would not watch the shares plummet....I would get out sooner rather than later.

Hope this helps....as I don't know how much you invested, but nobody likes to lose their hard earned income.

Regards

Chris

clairbear_3

Peachy no need to panic,your timing may have been slightly wrong but unlike horseracing bets you havent lost.
In the longer term you could still make money,consider setting a limit sell for the short term at say 15p and wait
Hopefully you havent invested too much
At the moment the market is for short term/day trading this is buying shares that fall and hoping they rise quickly in the short term,a risky but profitable game which takes experience