Loading ...While the traders most likely have programs that locate stops, it would not be significant except for a large position where they would move the market to hit that stop.
However, if you place your stop in a standard location as under a common moving average, or below a recent low, or a common 10% then your stop will likely fall with many stops and so be the equivalent of a whale position.
I agree that stops written on paper are the best if adhered, but again set in an unpopular amount.
I use weekly charts and set mental (written down) stops with significant losses so to be seldom hit. If it is hit, I do not rebuy at higher and seldom at lower prices. I move on to another opportunity. This is how I do it for my trading window of months to a year holding time.
With small cap miners and big volatility, one would expect 15 to 25 percent dips. The two things that help me are: I sell when the stop area is hit or sometimes earlier if the chart looks dodgy. The mental energy expenditure of riding a way under water stock is too high. Second, I am very cautious about my entry points. I use a combination of a momentum indicator and wave count and just chart look to buy.
When a buy doesn’t work I accept that I am playing in a rigged casino with rigged dice. With that disadvantage and no indicators that work all the time, but only a high percentage, what can you expect?
aurum
I start with small positions, do not add to losing positions, and only add when a significant gain cushion exists and then on dips.