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Stop loss sucks!!!!!!!!!!!!!!

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DZ
Contributor
I was stopped out of my trade of TOPSBO. I set my trigger @ 36 and for some stupid reason a trade went through @ 33. Simon this is pathetic how are you supposed to trade if there are flaws in the system? At least it was sold @ 43 but I still lost a couple of hundred bucks. Now watch, the warrant will climb to 60 and I will be the blady idiot, again, who lost more cash. I give up!!!
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33 REPLIES 33
Super Contributor
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1 13 Sep 2007 16:22 100,000 43 R 43,000 2 13 Sep 2007 15:35 50,000 43 R 21,500 3 13 Sep 2007 14:51 170,000 43 R 73,100 4 13 Sep 2007 14:51 70,000 33 R 23,100 5 13 Sep 2007 14:50 100,000 41 R 41,000 6 13 Sep 2007 14:48 70,000 43 R 30,100 7 13 Sep 2007 14:48 28,000 43 R 12,040 8 13 Sep 2007 14:48 30,000 43 R 12,900 9 13 Sep 2007 14:47 70,000 33 R 23,100 10 13 Sep 2007 14:47 21,000 37 R 7,770 Just looking at the last 10 trades I can understand your point, This does not make sens tome a drop of more that 7 c and then a climb of 10 c in two minutes ( not even a wave does that man ) I would copy this page and most surely take it up with with !!!
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DZ
Contributor
I sure will. what the hell is going on?
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me think that they saw the mistake because 70000 was traded 33c ( trade 9 ) and then again at trade 4
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DZ
Contributor
What should I do? I am going to e-mail them but I'm probably going to be given the ol "we can not be held liable for for triggers that blah blah blah..." Funny how they always tell to have stop losses and exit points but they cant actually get them to work. What happened to the warning when you put in a trade that is 5% above or below ruling price, do they actually check the trades?
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well i would ask them to explain way this had ocured and then only ask them to expain to me way the matrix shows a 35 c at 25810 at most
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which was not even hit !
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For the trade to have hit at 33 c the ruleing price should have been around 25 680 + - 280 point below the low of today
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Highlighted
Regular Contributor
DZ Did you by any chance had a selling order in the market as well for those warrants. Lets say you had a selling order for 70 000 TOPSBO at 60c. You also had a stop loss at 40c. (You can do set both with OST by the way.)If the selling price falls to 40c the system picks up your stop loss but then automatically cancels it because there is a selling order for it in as well. Result is a failure in stop loss. Although one OBVIOUSLY cannot sell the f^&*king thing at 60c!! And try to exsplain THAT to STD bank... Believe me I have tried. Bottomline and john will agree with me. OST's stop-loss system does not work (if you want to trade as well). So be careful!!!
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DZ
Contributor
No I had a fixed stop loss. I wanted to put on a trailing but thought I would do it manually rather as I've previously had a problem with the trailing. These guys better get their act together cause when the fed cuts rates the market is going to rally and I'll be out of the market. So now I'm stuffed!!
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Guys guys guys - don't you think that trading with leverage is a lot safer with SSFs - all of the above issues appear to be as a result of problems with market makers (who, after all, are fallible human beings) ...
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Valued Contributor
I don't understand the issue? Your stop loss triggered because a trade went through the market below your trigger level? We then acted on your trigger instruction and sent you warrants to market. We can hardly be blamed for a legit trade at 33c? Bottom line our stop loss system worked 100%.
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Regular Contributor
No response from OST on this forum, stupid email response on my tele query, no response on email request for explanation
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Super Contributor
Some more fallible that others. Yes, Deutsche, that means you and your stupid bloody waves. But, I digress.
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Valued Contributor
an a very important point. Stop loss is a difficult issue to manage for a number of reasosn, but without one you will go bust.
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DZ
Contributor
How can a trade go through at that price when the index should have been -300 points for that price. So if suspect trades are allowed to go through how can you offer a service if it is open to abuse! SFM are not doing their jobs by protecting the integrity of their clients by allowing these dubious trades to go through. Thats the bottom line Simon, so next time in your presentation dont punt stop losses if they dont work!!
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Valued Contributor
DZ, HUH. No my friend. Sure the trigger trade went through at a level that may have been below matrix, what are we supposed to do about that? Stop the market? In this case I assume the issuer was out of the market and that's how the 33c trade went through. It is a fact of life that trades go through at wild prices from time to time, especially on low liquid products such as warrants.
You say *allowing these dubious trades to go through*. We can not do anything about that, it was a legit trade on the market processed by the JSE (being below matrix does not make it illegal).

As for not promoting stop loss at my presentations - that will never happen. A stop loss is the single most important part of a trading strategy (I will say it again, without one you will go bust). What you're confusing here is the concept (stop loss) with a nasty experience (wild trade triggering the stop). Sure this was nasty for you, but trust me this will happen many times over a trading life time.
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Super Contributor
Simon how many clients are you going to lose through the inadequate stoploss system on geared instuments. You have the solution, but were is the will.
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Valued Contributor
John, our system was not at fault. A real trade went through at 33c, this triggered the stop - end of story. If DZ has a gripe with anybody it would DB for not being in the market and as such enabling a 33c trade.
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