A speccie stock like BUY why would you bother entering into the stock with tight stop loss when its trading between 11-12 cents and occasionaly 10.5? Just does not make sense.... Even if you bought it at 11cents you will trigger your stop loss at 10.5 and sell at 10.5 or 10. The fact of the matter is this is BUYs trading range for the past 2weeks or so.... It just does not make sense...
Its another herd mentality, when everyone does it yep the share price goes down for no reason at all...
Some one said it is a good practice and all good traders use it. I have news for you Most good traders trade on fundamentals like WB and co... Not on a stab in the air and voodu charts, with stop losses. If it were not for the herd WB and co would not be making any money:)
Here is an explanation for stop loss from WIKI...
A stop order (also stop loss order) is an order to buy (or sell) a security once the price of the security has climbed above (or dropped below) a specified stop price. When the specified stop price is reached, the stop order is entered as a market order (no limit).
Once the stop price is reached, the stop order becomes a market order. In a fast-moving market, or if there is insufficient liquidity available at the stop price, the price at which the trade is executed may be much different from the stop price. The use of stop orders is much more frequent for stocks, and futures, that trade on an exchange than in the over-the-counter (OTC) market.[citation needed]
A sell stop order is an instruction to sell at the best available price after the price goes below the stop price. A sell stop price is always below the current market price. For example, if an investor holds a stock currently valued at $50 and is worried that the value may drop, he/she can place a sell stop order at $40. If the share price drops to $40, the broker sells the stock at the next available price. This can limit the investor's losses (if the stop price is at or below the purchase price) or lock in some of the investor's profits.
A buy stop order is typically used to limit a loss (or to protect an existing profit) on a short sale.[3] A buy stop price is always above the current market price. For example, if an investor sells a stock short—hoping for the stock price to go down so they can return the borrowed shares at a lower price (Covering)—the investor may use a buy stop order to protect against losses if the price goes too high. It can also be used to advantage in a declining market when you want to enter a long position close to the bottom after turn-around.
A stop limit order combines the features of a stop order and a limit order. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or to sell) at no more (or less) than a specified price.[4] As with all limit orders, a stop-limit order doesn't get filled if the security's price never reaches the specified limit price.
A trailing stop order is entered with a stop parameter that creates a moving or trailing activation price, hence the name. This parameter is entered as a percentage change or actual specific amount of rise (or fall) in the security price. Trailing stop sell orders are used to maximize and protect profit as a stock's price rises and limit losses when its price falls. Trailing stop buy orders are used to maximize profit when a stock's price is falling and limit losses when it is rising.
For example, a trader has bought stock ABC at $10.00 and immediately places a trailing stop sell order to sell ABC with a $1.00 trailing stop. This sets the stop price to $9.00. After placing the order, ABC doesn't exceed $10.00 and falls to a low of $9.01. The trailing stop order is not executed because ABC has not fallen $1.00 from $10.00. Later, the stock rises to a high of $15.00 which resets the stop price to $14.00. It then falls to $14.00 ($1.00 from its high of $15.00) and the trailing stop sell order is entered as a market order.
A trailing stop limit order is similar to a trailing stop order. Instead of selling at market price when triggered, the order becomes a limit order.
BUY Price at posting:
10.9¢ Sentiment: Buy Disclosure: Held
(20min delay)