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

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Super Contributor
Simon your system did exactly what it is suposed to, I have no problem with that, but please concede the system is flawed as it it does not relate to the underlying.. How many people trying out warrents even know there is a matrix!!!!
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DZ
Contributor
You know what the problem is Simon? That I was caught out by not having a stop loss on my last trade. Now I put one on and get burned. So tell me what do I now? Once bitten...
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Super Contributor
Simon if the SINGLE most important part of a trading stratergy is the most inportant thing, Give us a tool that alows for effective execution of that stratergy.....That is my point and you know it too
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Regular Contributor
I hate to use the forum and more for something like this. Maybe my English grammer and market terminology is lacking but my question in my email - unresponded to -: "Can you please explain why it is not possible to notice spikes like this?"
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Not applicable
I'm completely with Simon here - the market does things like this, and any participant should be well aware of the risks involved before taking any position - it's all about taking responsibility ...
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Super Contributor
Greg absolutly, however, when trading warrants the volumes just are not there for a stop loss to trigger off the warrant.They have to set the system to trigger off the underlying, that way you can set a stop knowing it will trigger, not when some shmow trades well below fair value. Ofcourse once again ii was DB that was the issuer
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Not applicable
Don't disagree with you at all John, but that's exactly my point - why trade DB warrans when you know that this kind of thing happens often with them??? If you are trading DB warrants, you should have reconciled yourself with the risk that it might happen, so you sholdn't moan when it does.
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Not applicable
I reckon if you want to trade shares/installments them buy them go away for a couple of days and see how you've faired. If you want to trade warrants be prepared to sit in front of your pc watching 8 hours a day.
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Highlighted
Regular Contributor
Again my 2c. ONE CANNOT TRADE on a daily basis warrants with the current OST stop-loss system. It does not work Simon - FULLSTOP!!! Warrants are VOLATILE instruments. As such one expects swings up and down. My gripe is if you buy 1000 warrants at 50c. You then put a selling order in for 60c running for say 14 days AND ALSO SET A STOP-LOSS at say 40c to protect your capital. THE STOP LOSS WILL NOT WORK if the warrant drop to 40c. PLEASE BE AWARE OF THIS. Reason is that it sees the selling ordr and then calculate that you have 0 warrants to sell!! Although you OBVIOUSLY cannot and have not sold at 60c when the price is 40c!! So stop-lossis a failure... Complete failure! BEWARE!!!
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Not applicable
Ya, there are some minor flaws in the Stop Loss system on this site - and combined with the enthusiastic lack of concern showed by the warrant issuers this becomes a poisonous combination.
If you only traded equities then the Stop Loss system here would work prolly 90% of the time.
The REAL problem is that there's a (manipulative?) human element involved in the price action of the warrants. That's one of the reasons I moved to SSF's about a year ago and have never touched a warrant again. Warrant Time decay + dicey stop loss + manipulation = Too much Risk
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Super Contributor
LOL and losing your shirt with SSF is better .mmmm
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Not applicable
No, serious.
Some ppl look at the POTENTIAL risk of trading SSF's and preach that "You can lose MORE than you put in" and with warrants "You can only lose what you put in"
However, with all the serious drawbacks on warrants you have a better chance of losing what you put in than you have of ever losing your whole trade on SSF's. Besides, there are several stop-gaps on SSF's which will prevent you losing more than your trade value unless you're REALLY stubborn.
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Not applicable
right u say it happens form time to time but 2 trades go through within 10 min of eash other with the same amount of share going through at the same price well below matrix f#@k man! do not tell me it happens from time to time
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Super Contributor
I trade only SSF and so far the stop-loss worked ok.But dont set it too close, allow for 2-3 %.BUT BE CAREFUL,THERE IS A POSSIBILTY THAT THE FED WILL NOT CUT RATES, BUT WAIT A WHILE LONGER, TIME FACTOR IMPORTANT HERE.
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