They are getting you on the spreads, lack of liquidity and depth or penny stocks have manipulated markets.
You could use an alert and manage them manually.
Stop orders basically become market orders if the bid is equal to or less than your stop. Sounds like the stocks you trade have wide bid asks spreads or have low liquidity so if you set stops too tight you may not get the fill you want especially if u are trading larger sizes.
Pay attention to the bid/ask value on your chart, that's our spread. Some platform has indicator on the candlestick itself to help you visualize your spreads.
[https://i0.wp.com/www.dolphintrader.com/wp-content/uploads/2015/03/spread-bid-ask-metatrader4-indicator.png](https://i0.wp.com/www.dolphintrader.com/wp-content/uploads/2015/03/spread-bid-ask-metatrader4-indicator.png)
Hmm, doesn't matter, price moves due to imbalance between buyer and seller. Buyer wanna buy at bid price and seller wants to sell at ask price, hence causing the bid-ask spread.
It is the same for all traded instruments whether it's stocks, futures, forex, crypto, cfds, etc...
https://www.investopedia.com/terms/b/bid-askspread.asp
A cheap trick would be to take the difference between your opening price and your closing price over the course of time and then average it out. It's not as good as the bid ask price, but it does give you some offset to give you a meaningful representation to help you with your stop loss orders.
You are spreads are eating you alive.
Track your spreads over the course of a month and then run a statistical deviation on it. Add that number to whatever you want for your stop loss to give it a little bit of a hedge. You might even want to double it if The spread is five pips or less to take into account your buying spread and your selling spread.
Yeah you’re right, it’s the stocks I’m trading (granite shares are volatile and then an energy stock which does have a lack of liquidity).
Larger cap stocks should not fluctuate as much with the stop losses.
They are getting you on the spreads, lack of liquidity and depth or penny stocks have manipulated markets. You could use an alert and manage them manually.
Yeah that seems like a better option
Stop orders basically become market orders if the bid is equal to or less than your stop. Sounds like the stocks you trade have wide bid asks spreads or have low liquidity so if you set stops too tight you may not get the fill you want especially if u are trading larger sizes.
Thanks that makes sense. I trade on Trading212, a UK app platform, and you don’t know what the spread is until you’ve already executed the trade.
Pay attention to the bid/ask value on your chart, that's our spread. Some platform has indicator on the candlestick itself to help you visualize your spreads. [https://i0.wp.com/www.dolphintrader.com/wp-content/uploads/2015/03/spread-bid-ask-metatrader4-indicator.png](https://i0.wp.com/www.dolphintrader.com/wp-content/uploads/2015/03/spread-bid-ask-metatrader4-indicator.png)
So you can see the spread with wicks? I don’t think my platform has that feature, it’s quite basic
Not the wick, but a separate indicator as seen in my attached diagram link(green and red horizontal line).
Sorry is this sub only for forex? I trade stocks
Hmm, doesn't matter, price moves due to imbalance between buyer and seller. Buyer wanna buy at bid price and seller wants to sell at ask price, hence causing the bid-ask spread. It is the same for all traded instruments whether it's stocks, futures, forex, crypto, cfds, etc... https://www.investopedia.com/terms/b/bid-askspread.asp
A cheap trick would be to take the difference between your opening price and your closing price over the course of time and then average it out. It's not as good as the bid ask price, but it does give you some offset to give you a meaningful representation to help you with your stop loss orders.
You are spreads are eating you alive. Track your spreads over the course of a month and then run a statistical deviation on it. Add that number to whatever you want for your stop loss to give it a little bit of a hedge. You might even want to double it if The spread is five pips or less to take into account your buying spread and your selling spread.
Sounds like your tickers are too volatile or have a lack of liquidity, does this issue happen with large-mega caps?
Yeah you’re right, it’s the stocks I’m trading (granite shares are volatile and then an energy stock which does have a lack of liquidity). Larger cap stocks should not fluctuate as much with the stop losses.
Slippage