- Long AAPL @ 600.00 as of Thursday's close.
- Overnight, news breaks that all iPad's ever made are defective.
- Monday morning pre-market, AAPL is trading down 50%.
- Depending on the type of stop you set and your broker, you may have your stop triggered pre-market.
- Apple opens Friday morning with a gap down 75%. It does not matter that your stop was only 5%, you will lose 75% because the first traded price triggered your stop (ie: gap down)
Basically, the market can open at whatever it wants. It does not have to open where it last closed. Above scenario could play out for any type of fraud, bankruptcy, etc type announcements. Stocks can also be halted mid-day and re-open with a huge gap down.
In all of the above, you will have significant slippage well beyond your stop.
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Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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