Reply To: STA – cut loss or continue

Dead Cat Bounce
Dead Cat Bounce
  • Posts: 12

Hey Scott

Before you enter any trade you should have a view regarding expected profit and acceptable loss.

You should also be using trailing stops to protect your investment.

I note that after you purchased STA the price moved up to 28.50 an increase of about 10.7 % on your purchase price.

A lot of commentators suggest a trailing stop amount of 8%.  If you had been using a trailing stop (set at 8%) you would already have been stopped out of your trade (and retained a little profit).

At present you are holding a loss of about 3.5% right?

You may therefore set a tight trailing stop at 4-5 percent, and if you get stopped out your total loss will still be in the 8% range.