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I struggle to see a use case where you would want to sell for 46 or higher, but only if the price was below 45 before - if you are happy to sell for 46 you could just do it without the stop. Unless you think the dip and slight recovery together are an indication that the stock will fall even further. Not an obvious conclusion but if you think so, you can do ...


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The purpose of a sell stop limit order is to sell when price drops to a specific price. The higher stop price activates the limit order. The attached limit price is the lowest price you're willing to accept. This is demonstrated in your first example: Current Price: 50$ Stop Price: 45$ Limit Price: 43$ If you reverse these two components, it's just a ...


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If you sell short without owning substantially identical property (stock or option) in your account, the holding period starts when you later buy the position to close the short sale. The holding period is one day, so it’s a short-term capital gain or loss. Most investors think selling short is the reverse of going long and the holding period should start on ...


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If you are in the United States and you are talking about "open-end" investment companies, then there are two things that could stop this. The first one is that some funds place contractual restrictions on how often you are allowed to trade, they may waive that or partially waive it if you move the money inside the fund family. They may also ...


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Day trading mutual funds has its downsides, like the redemption time being only once per day at close of market, for one, and likely penalties for trading them too often. However, ETFs (exchange traded funds) are a different story. In fact, many many day traders focus entirely on the SPY ETF, which is the most liquid security in the world by far. 2nd most ...


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Great question.. something I am trying to figure out as well. The way I see it: (Disclaimer: Not financial advice. Use your own judgement to make decisions) You can DCA Bond ETF same as you DCA Stock ETF. You will Average out the YTM over time. Important to recognize that Bond Price is dependent on Interest Rate and Credit Quality. So unlike a Stock where a ...


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"Win rate" is not a sufficient metric -- the size of gains and losses matters. A strategy with a win rate of 80% can still be bad if the losses are large. A simple example is writing naked out-of-the-money options ("picking up nickels in front of a steamroller") -- eventually you will go broke. You say "we are not risking more than 1%...


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If your broker offers it, since you own the stock, you could accomplish this with a one-cancels-the-other order: ... a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order often combines a stop order with a limit order on an automated trading platform. When either the stop or limit ...


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