Set trailing stop-loss and buy prices online?

tdowson

I have an online share trading account and it lets me set a stop loss, which I do. However it doesn't let me set an automatic trailing stop-loss.

For example, set stop-loss at 4% at time of buying the share, but if price rises, automatically revise stop-loss to 4% below each new high price. Is there an online trading service that does provide this option?

Are there trading accounts that also let you set a new entry buy instruction, e.g. buy 4% below your stop loss execution price? So you could automatically sell if the price falls 4%, and buy again if it falls 8% or more? Ideally having purchased, a new 4% (or whatever you originally set) trailing stop-loss is automatically applied, and so on.

Thanks for any suggestions how this could be achieved without great cost.

MarkFromCornwall

tdowson wrote: »

I have an online share trading account and it lets me set a stop loss, which I do. However it doesn't let me set an automatic trailing stop-loss.

Motley Fool's sharedealing service gives you several options. I've cut and pasted the following from their help file. (I don't think any of them are percentage based though)

What is TradePlan?
TradePlan is a service offered by The Motley Fool Share Dealing Service, which lets you take control and make the most of the rise and fall of share prices without having to monitor the markets day and night. There are five different TradePlans which can be placed on CREST eligible UK investments. These are Limit Order, Stop Loss Order, Target Setting, Range Trading and Price Locking. Setting up your instructions online is easy, and once you have done that we will take care of the rest until your order is dealt or you amend it, cancel it or the TradePlan expires.

What is a Limit Order?
A limit order lets you set a price above which you will not buy and below which you will not sell investments. So if XYZ Plc's shares are currently trading at 752 pence to buy, but you’re only prepared to pay a maximum of 745 pence, you could set a limit order to buy at a maximum of 745p and the order would be dealt if the buy price of XYZ Plc's shares moved down to 745p or lower. Your order can be for a specific number of shares, or an amount of money and we'll work out how many shares that is depending on the limit price you set and taking into account the charges and stamp duty (where applicable). You can also set an expiry date for any working day in the future.

What is a Stop Loss Order?
A stop loss order lets you set a price to sell shares which is lower than the current price to protect you from sharp falls in a share price. Experienced investors would usually set a target for the profit they want to achieve and also for the loss that they’re prepared to make - a stop loss lets you control the latter. A stop loss order is used in Target Setting so scroll down to see an example of how they work. Please note, in some circumstances a share price may fall suddenly, for example when a share goes ex-dividend. This could mean that we execute a stop loss order for you that wouldn't otherwise have been dealt. We will execute the deal in line with your original instruction, which may be at a lower price than you specified by your stop loss.
For example, XYZ plc shares close at 700p on Monday night. On Tuesday, the ex-dividend date, the price opens at 670p. You have set a Stop Loss at 690p so, we'd execute your order at 670p. You should monitor your active TradePlans carefully.

What is Target Setting?
Use Target Setting to maximise profit when share prices rise and protect against losses when they fall. This TradePlan is a combination of a limit order to sell at a higher price than the current price and a stop loss order to sell at a price lower than the current price. For example, if the current sell price for your shares was 450p you could set a TradePlan to sell your shares at a limit price of 455p and a stop loss order at 447p. If the price began to rise, your TradePlan would execute at 455p, but if it began to fall your stop loss would protect you by selling your shares at 447p.

What is Range Trading?
Use Range Trading to specify the prices at which you wish to buy and sell a particular stock without the need to constantly watch share prices. It's a combination of two limit orders, one to buy shares at a lower price than the current price, and one to sell them at a higher price. For example you could set up a TradePlan to run for the next six months so that every time XZY plc's shares hit 800p you purchase a specific number of them, and then every time they reach 900p you sell them.

What is Price Locking?
Use Price Locking to track a rising share price and protect you if the price begins to fall. For example, if the current price for XYZ plc is 650p to sell you could set a 20p stop loss to sell at 630p. If the share price falls to 630p during the trading day, then your shares would be sold. If the shares rise and close at 660, your stop loss order would be increased from 630p to 640p maintaining your 20p tolerance.

moneylover

The above is an eyeopener for me as I have never set a trade out of hours and didnt realise such sophistication was possible.
So have been looking at X-O which I use. A quick question - stop loss and good thru are the options possible. If I want to sell when the shares reach a certain higher price than the price they closed at that day do I select 'good through' and put the minimum price I want to sell at? Is this correct? Thanks

tdowson

MarkFromMullion - thanks for that information.