111–120 of 147 posts
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Did friend forget to put loss stops when issuing orders..
Not sure about the friend, but it happens to the best of us. Somebody on Wall Street has my money.
Setting stop loss for qualified trader should be like looking around when you are crossing the street on intersection.
There some people may have gambling problem, or software has bugs, but it is another story..
Mispelling “higest” in tab.
A convenient tool. I’m restricted from trading in my employer’s stock. There are no rules about trading in a highly correlated proxy.
Earlier quoted context omitted.
Not sure about the friend, but it happens to the best of us. Somebody on Wall Street has my money.
I am trying to understand this part. Setting stop loss for qualified trader should be like looking around when you are crossing the street on intersection. There some people may have gambling problem, or software has bugs, but it is another story..
I've never understood stop-loss, it seems to me that by using stop-loss, one is basically saying "I don't know what the fundamental value is and if it goes down I want to sell". Then, why buy the thing in the first place?
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TL;DR: Correlations does not imply causation. Having said that, if you can find a negative correlation AND there is a strong reason to believe that the negative correlation will hold as long as X and Y hold, then the tool could be very useful.
How would one determine what X and Y are?
The correlation is only a first indicator.
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Not with options. If you want to bet against a company you with options you can do it by either: 1. Buy a put. The put gives you the right to sell the stock at a certain price. If it goes below that price you make a profit, if it doesn’t your put is worthless. The maximum you can lose is what you paid for the put. 2. Sell a Call. This gives someone the right to buy the stock at a certain price (and you promise to sel…
> > doesn't betting against a stock have infinite loses? > Not with options. you maybe meant to say "not when you buy options": > 2. Sell a Call. This gives someone the right to buy the stock at a certain price (and you promise to sell at that price). If the stock is below that price your profit is what you sold the call. Your maximum loss is infinite since a stock price has no (theoretical) limit.
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I am trying to understand this part. Setting stop loss for qualified trader should be like looking around when you are crossing the street on intersection. There some people may have gambling problem, or software has bugs, but it is another story..
If I think a thing should be worth 45, and I buy it for 40, and then it goes down to 30, I'd rather buy more than sell? I've never understood stop-loss, it seems to me that by using stop-loss, one is basically saying "I don't know what the fundamental value is and if it goes down I want to sell". Then, why buy the thing in the first place?
A strategy that indiscriminately buys more of an asset as the asset price goes down only works with an infinite bankroll. Such a strategy run with a finite bankroll will necessarily blow up eventually. Rigid stop losses mostly just increase the volatility of a strategy though (which also contributes to portfolio drag). A sustainable strategy harvests volatility of the underlying (mean reversion) and/or dynamically deleverages (momentum) as the price moves against the entry.
Earlier quoted context omitted.
I am trying to understand this part. Setting stop loss for qualified trader should be like looking around when you are crossing the street on intersection. There some people may have gambling problem, or software has bugs, but it is another story..
If I think a thing should be worth 45, and I buy it for 40, and then it goes down to 30, I'd rather buy more than sell? I've never understood stop-loss, it seems to me that by using stop-loss, one is basically saying "I don't know what the fundamental value is and if it goes down I want to sell". Then, why buy the thing in the first place?
Data source? Did you correct for splits and dividends? Why not use returns? Nice idea, but we’re left with so many questions.
Prices are not adjusted, as these are not free.
How does this submission have both text and a URL? When hitting submit it's shown as either/or. Does the server not enforce it?