Originally Posted by
thestg
To clarify – I should have said that Air went below my Trailing Stop Loss.
When I first purchased I set my original stop loss at $2.33. This was set at this as I was looking at the biggest loss I could accept.
I then went back over the last years drops in AIR & found the largest was about 14.5% drop over a one week period.
I set my trailing stop loss at that 14.5% of the highest close price, so when it got to $3.23 on 26 Jan this set my Trailing stop loss at $2.76.
When the price went below $2.76 last Friday I should have cashed in and paid off my loan.
But what I did was look at if I could still afford a small loss, invest a little more & take a little more risk for a higher gain (Hopefully).
So I revised my Stop loss down to half way between the original SL $2.33 & my TSL $2.76 which is now $2.54
I’ll set my TSL at 14.61% so that it will cut in when/if the price gets to $2.98
i.e. 2.98 x (1-0.1461) = $2.54 which is the same as my present stop loss.
So I am not totally forgetting about my Stop Loss, I am just reassessing what risk I am prepared to take.