Know when to stop loss
Took a position with $Apple(AAPL.US$ with the long outlook that it will recover. But as I should always plan for a stop loss. For stocks I should set a 7% - 10% stop loss. For options that 7% -10% don’t really apply for me as the swings are much higher.
Posting my Sell Put option strategy as shown.
![Know when to stop loss](https://sgsnsimg.moomoo.com/sns_client_feed/101793897/20240303/7a95e4e860dd4ccaa02ef040ffbeabd1.jpg/big?area=101&is_public=true)
![Know when to stop loss](https://sgsnsimg.moomoo.com/sns_client_feed/101793897/20240303/830eac745f484a7bab4e1a21341f2012.jpg/big?area=101&is_public=true)
![Know when to stop loss](https://sgsnsimg.moomoo.com/sns_client_feed/101793897/20240303/b1b77806042e4686b4121308bc46fd5d.jpg/big?area=101&is_public=true)
How do you guys set your stop loss?
Have you ever tried planing for a stop loss?
What is your stop loss % for stocks or options?
Part 2:
Realign my position through stop loss (buy puts) and new position (Sell Put Option). Cost changed from 7.9 to 8.25 (slight improvement from a negative market motion).
![Know when to stop loss](https://sgsnsimg.moomoo.com/sns_client_feed/101793897/20240305/e5fe62a5e0fc4860877355405d00ea8a.jpg/big?area=101&is_public=true)
![Know when to stop loss](https://sgsnsimg.moomoo.com/sns_client_feed/101793897/20240305/c0e23ac9354f4e69845079b1912a5a5c.jpg/big?area=101&is_public=true)
Comparing both analysis side by side. Top shows before. Bottom show the repositioning.
Conclusion: Although option went south. Was able to reposition at a slightly better rate.
![Know when to stop loss](https://sgsnsimg.moomoo.com/sns_client_feed/101793897/20240305/c951787588654aeb8bc822182c8f78e9.jpg/big?area=101&is_public=true)
“Wish for the Best. Plan for the Worst.” CasualInvestor. ![]()
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SpyderCall : I usually set my stop losses at specific price points based on the technical levels or support and resistance levels. I am a technical trader, though.
I believe that most traders set stop losses based on the ratio of potential profit to potential loss. Personally, I just follow the technical levels in my trading.
CasualInvestor OP SpyderCall : Would you mind sharing your price point for this if it was you. Hopefully not some industry secret
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
SpyderCall CasualInvestor OP : These are the nearest support levels that I would use as my exit point if I was trading short-dated contracts with not too much time until expiration. If the contracts were leaps, then I would likely have a wider stop loss as I would be planning on holding longer.
I mostly trade contracts that are only a few months out or less, so if a trade goes against me, then I won't hold it very long. My exit points are not very far from the price in most cases.
Sometimes, I will try to salvage some of the losses if a trade goes against me, and I will convert the trade from long to short or vise versa using spreads essentially.
CasualInvestor OP SpyderCall : I typically go for longer contracts when I short them as I can exit whenever I feel it’s time to take profits. And I can wait for a reversal if it goes against me. Though there’s a caveat where I must not hit margin calls as that was a painful experience.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
SpyderCall CasualInvestor OP : if I am swing trading shares, then I am a lot more risk tolerant. My stop losses will usually be much wider.
CasualInvestor OP SpyderCall : Ya. Was much more risk tolerant and would have earned more if not for the forced liquidation.
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
I’ve added my trade for those that understands.
SpyderCall CasualInvestor OP : margin calls are never fun![pensive 😔](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f614.png)
CasualInvestor OP SpyderCall : Looking back. I could either have stopped loss earlier or topped up to not incurred a margin loss. At the end, waited for the reversal and happy with the profits.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
rennymc SpyderCall : I wish I could get both of you together and pick your brains about options! I sooo badly want to understand them and have studied so much, but my brain doesn’t function properly due to an illness.![slightly_frowning_face 🙁](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f641.png)
SpyderCall rennymc : Have you tried paper trading options?
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