Setting up stop loss

mw52563
mw52563 Posts: 18 Forumite
in Savings & investments
Hi,
I've just opened up an investing account and I noticed that some shares dont give me the option to set up a stop loss...
. Any idea why this option isnt given, it is on some other shares I looked at.
Thanks
Mike

Comments

  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    I love stop losses.:) Because I'm looking to buy some good shares cheap and nothing crashes the price of good shares better than a wave of stop losses kicking in :D
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
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    Maybe the shares without stop losses are smaller market cap and more thinly traded and therefore could move through a stop loss too quickly for it to realistically be triggered at anything close to the required price?

    imho, you are better off without stop losses as market makers can just move the price down to pick up shares on the cheap from stop losses being triggered. Instead watch the price yourself and get out if it falls through your comfort price level.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Shares such as ? In the smaller cap markets dealing volumes are far lower. So difficult to buy / sell in sizable quantity in the main.
  • kauto
    kauto Posts: 24 Forumite
    Hi Mike,
    To be honest I wouldn't worry about having a stop loss in place. Because short term volatility could cause the stop loss to be triggered, even though the long term outlook for the company is still good.
    The best question you can ask yourself before making an investment is:
    Would I be happy to buy shares in "xyz" company, even if the stock market closed tomorrow and didn't open for 10 years......
    :money:
    "Be Fearful when's others are Greedy and Greedy only when others are Fearful"
  • Malthusian
    Malthusian Posts: 10,936 Forumite
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    What are you going to do with the cash when the stop loss activates? Why not just do it now instead of waiting to lose money?
  • daddy_bro
    daddy_bro Posts: 42 Forumite
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    edited 8 June 2017 at 9:49PM
    There are a few times I wish I'd set up a stop loss. It's easy to get into the habit of saying "It'll come back up tomorrow" Then tomorrow it goes down a bit more and you say the same again.
    Much easier to set up a sell point when buying and take the emotion out of the equation.
  • Malthusian
    Malthusian Posts: 10,936 Forumite
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    daddy_bro wrote: »
    There are a few times I wish I'd set up a stop loss. It's easy to get into the habit of saying "It'll come back up tomorrow" Then tomorrow it goes down a bit more and you say the same again.
    Much easier to set up a sell point when buying and take the emotion out of the equation.

    Even easier not to throw away money by gambling on day-trading.

    The notion of taking emotion out of day-trading is nonsense, it's like saying you're going to take the pain out of S&M. If you were thinking rationally rather than emotionally you wouldn't day-trade in the first place. Day-trading is about the belief that you are better than everyone else at predicting the movement of lines on a graph, and therefore you deserve to get rich quick. Both of these beliefs are emotional, not rational.
  • kauto
    kauto Posts: 24 Forumite
    Malthusian wrote: »
    Even easier not to throw away money by gambling on day-trading.

    The notion of taking emotion out of day-trading is nonsense, it's like saying you're going to take the pain out of S&M. If you were thinking rationally rather than emotionally you wouldn't day-trade in the first place. Day-trading is about the belief that you are better than everyone else at predicting the movement of lines on a graph, and therefore you deserve to get rich quick. Both of these beliefs are emotional, not rational.

    True dat :T
    "Be Fearful when's others are Greedy and Greedy only when others are Fearful"
  • daddy_bro
    daddy_bro Posts: 42 Forumite
    First Post First Anniversary Combo Breaker
    Malthusian wrote: »
    Even easier not to throw away money by gambling on day-trading.

    The notion of taking emotion out of day-trading is nonsense, it's like saying you're going to take the pain out of S&M. If you were thinking rationally rather than emotionally you wouldn't day-trade in the first place. Day-trading is about the belief that you are better than everyone else at predicting the movement of lines on a graph, and therefore you deserve to get rich quick. Both of these beliefs are emotional, not rational.

    This is very true but it still hurts to see your Lloyds or Standard Life shares fall by half their value. Not many people buying Bank shares for day trading.
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