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STOP LOSS TRIGGERED

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Not applicable
To Simon or forum Hi guys i shorted anglo with a ssf.my stop was set to trigger at 27500 and buy at 27550 to get out.anglo did not reach that price today.Why was i stopped out? Is nt the stop set on the underlying price (anglo shares)? instead of being in profit now im not in the market!thanx dummie
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9 REPLIES 9
divz
Super Contributor
As far as i know stops are not set on the underlying price but on the midpoint ssf price which could quite easily have triggered your stop
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divz
Super Contributor
at an underlying of 27500 your ssf midpoint price on agl would be 27767 which is effectively the price you should have used to place the stop
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BAP
Regular Contributor
Correct. Is a short on Anglo or the other recent movers a good option according to the Forumites? Or shall we wait for a definite trend and miss the boat? Merafe my other short candidate.
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Not applicable
thanx for info.i learned an exspensive lesson!how did u calculate the midpoint on 27500?
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divz
Super Contributor
use the matrix table - see tab under name of contract in this case AGL contract page where you see the "trade" and "quote" tabs
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Not applicable
I hate stoplosses.they messed me up once on an ACL trade,cost me 13grand lastyear when just started trading..
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SimonPB
Valued Contributor
hmmm, that view elads to one consulsion .. nive knowing you ..
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Ninja
Super Contributor
Stop losses are essential....however there are 2 different types. If you are trading SSF's you should have a fail safe trailing stop loss of 15 - 20% or 1 - 2 X ATR in the OST system. Your second stop loss is a trading stop loss which is a mental number which you act on if it is broken on close of day prices. Intra day break of the trading stop loss is irrelevant, only an intra day break of your fail safe stop can be acted on. Unless you are trading intra day, your trading stop should not be in the SB system, it is a number you watch and execute the following morning if it is broken on close. This will help you ignore the intra day noise while you wait for your analysis to prove you right and catch the price move you have identified.
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HateGauteng
Super Contributor
. . . . or just wait to beclosed out.
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