a_p wrote: ↑Sat Feb 20, 2021 11:08 pm
So, part of an answer to my question about end of day stops has been provided in latest market update, and it was embedded in a description of one of the plays.
Why couldn't this information be provided here in the forum, or (better yet!) in much-suggested reading materials? I guess we'll never know
For new subscribers, this is why an end of day stop is superior to traditional stops. Most of our stocks trend higher after the stop is triggered. An end day stop (which is a mental stop), is triggered when the stock closes at or below the suggested stop price. After that, one places a GTC limit sell order, and there is no need to flee for the exits, as the majority of the plays we have been stopped out of trended higher. Thus, investors can usually get a better price, as was the case with CCMP.
It still doesn't elaborate what is typically done in cases when it *doesn't* trend higher, as is mostly the case during a strong pullback, like in spring 2020, where a lot of stocks didn't recover to their proposed stop for a very long time.
End of day stops are covered well enough in the suggested reading material
All stops are now “end of day stops”; the stop is only triggered if the stock closes at or below the suggested price of the stop. For more details on “end of day stops” visit this link Detailed Info on Stops
I had no problem understanding the above statement. The stock closes at or below the suggested stop price and tomorrow as a trader you try to get the possible price. I did not even click on the link that provides more details. If the stock continues to trend down which has not happened to me yet, I would just get out at the best possible price. In the AI service, what happened is one stock gapped down and opened the next day below the stop price. The stop price was 18, I got out at 14 or better and that was it. However, I closed the first half for a profit of almost 90% and even though I was stopped out at 14.00 I still got out above the entry price of 12 and change. The reason I got out at 14 or better is I decided to have no stop in place. When I saw the stock Gap down I decided it was time to get out, so I adjusted the rules.
If you click on the link suggested this is what it says on End of day stops
https://tacticalinvestor.com/what-is-a-limit-order/
What is an “end of day stop”?
It’s like a mental stop as you don’t enter any trade in your brokerage account until the stock closes at or below the stated stop price. In the case of IBB, the stop is 81.00. IBB would have to close at 81.00 or below for the stop to be triggered. Then the next day you would enter a limit order (under order type select limit) to sell IBB at 81.00.
Logic dictates that just as Sol offers a range of entry points to go long, that if you can't get out at the suggested price you aim for the best possible price. Sol's team then uses this data to come out with an average exit price.
While I understand the need to get detailed info, the focus should not be on factors that are not maybe such a big issue and that we can work out ourselvesm. As
Astute mentioned the power of this service, is the trend indicator, the sentiment data and the incredible Stock picks. Getting stopped out once in a while in comparison is not a big issue, even if I might have to get out a price that is lower than the suggested stop price.
There is no way to come out with an idiot's guide to investing; it's an impossible feat. The TI Teams sends out a lot of past updates, several years worth to be precise, I think dating all the way back to 2015. If you go through those updates you can see that very often he discusses adapting the service to suit your needs. For example. I sometimes use end of day stops, sometimes I use a regular stop and sometimes I use no stops.
This is just my two cents and not an attack on your question.
But in this day and age where it is hard to find a good service, it is a breath of fresh air to find a service that offers a massive bang for the buck and where Sol and his team go out of their way to help investors develop some form of independence. The sheer volume of good reading material is also something you would be hard-pressed to find anywhere.
Be patient and things will start to make sense. Read as many past updates as you can and if you have the time read as many of the articles posted on the site that you can. Each article and each past issue I read helped me make better sense of the service. The articles on stock market crashes are quite good
. When I first subscribed to SOL in Jan 2020, I asked for past updates to Jan 2018. I had tracked all his Trend Portfolio trades (not the Moderate and ETFs). I also did not track options since I do not use options. I scaled in in 3 parts and scaled out in 2 parts as suggested. I bought at the top, and sold at the bottom of his recommended range so I was taking the worst possible performance case.
