The idea of a stop loss is that you can limit your losses by adopting a more passive investment style. Many brokers use it as a marketing gimmick along with offering you free money to get you to sign up, as it gives the reader the impression that you can be passive. If only investing was that easy. A stop loss is only useful IMO if you are actively monitoring the share price and regularly revising it based on market analysis and forecasts, especially with specs because they are more volatile.
As far as I am aware there is no universal formula to determine what is the optimum level to set the stop loss trigger.
BLK Price at posting:
40.0¢ Sentiment: Sell Disclosure: Not Held
