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stop loss execution

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Not applicable
I read in the tutorial that stop losses are only activated after 10 am to prevent a close out in the usually erratic and chopping first hour of trade. this morning my position of 6 contracts of truworths-march was closed out at 9:11 just , it went on to move above yesterdays closing price. Why did it close me out before 10 am? Am i missing something simple?
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4 REPLIES 4
Tango
Super Contributor
I've always understood stops to be active during full trading hours. It's best not to have them active during the open, and it's better yet to use alerts on the underlying and then executing your own stops. Automated stops on instruments are often triggered by wide trading range, idiots selling @market with no market-depth, malicious traders selling when the issuers are out the market etc
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Brommie
Frequent Contributor
If you have a trailing stop loss, does this follows the highest price during the day or are they set at the closing price of the previous day?
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TraderSteve
Frequent Contributor
The highest price during the day. I prefer to use an alert and if my stop loss level is reached I can then assess the situation and make the call as to sell or hold on because of a temporary set back.
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Goldilocks
Occasional Contributor
I think it is 9.10am and not 10.00am
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