winter,just to clarify for Traders benefit (I know you...

winter,

just to clarify for Traders benefit (I know you understand but the reply is bit ambiguous).

What you are meaning to say, from the textbook, is that trader should not lose more than 2% of their TOTAL trading bank in a single trade.

So an individual stock (in your total portfolio) might have it's stop loss set at say at least 6% for Lynas - but a 6% movement may only be equivalent to 1% of your total portfolio.

All that being said ......... I don't use that textbook :-) especially for Lynas. I use alerts then I get in and have a look at what's really going on. There are some trading firms that will intentionally cause a momentary downspike to trip stop losses so they can then harvest at the lower price.

The need to set stop losses is also determined to some extent by how accessible you are to the market (ie significant difference to being on a live trading screen versus being on a holiday in the middle of Africa)

A few months ago I caused a down spike in Lynas when a stop loss I set triggered and caused a sale of 200k plus shares to sell at market price on a thinly traded day. (Yes I owned up to that boo boo on this Forum)

Anyway keep doing your research and only trade with token amounts until you understand how the market and especially Lynas behaves and always DYOR.