What would be the Cut Loss/Stop Loss Price for Long/Buy trade - 2nd April 2017
Taking for example for using this counter Singpost .
Purchased price @ $1.365 for 10000 share.
Total amount purchased is $13650 ( excluding brokerage fee etc)
Cut Loss /Stop Loss price depends on your risk profile.
Let say about 5% Cut Loss/Stop Loss price .
We would be looking at the Cut Loss/Stop Loss price at $1.30.
$1.365 less $1.30 = $$0.065 x 10000 share = $650.
$650 divided by $13650 = 4.76%
In this case , your Cut loss amount will be $650 which is approximately close to 5% that you could afford to loss.
Other may have a higher risk appetite and can roughly use 8% Cut Loss as a way to limit your loss.
For 8%, the Cut Loss price will be at $1.255 .
$1.365 less $1.255 = $0.11 x 10000 share = $1100.
$1100 divided by $13650 = 8.05%.
( Trade base on your own decision)
https://spore-share.com or sporeshare.blogspot.com It is very important to equip and educate ourselves with the Trading or investing knowledge. Don’t rely on tips! Ensure we have a proper plan in place whenever we enter a trade. Don’t speculate and trade without knowing what you are trying to achieve. Only trade when the trading opportunity arise. All information provided is just just for sharing. (Trade/Invest base on your own decision!)
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