Quote:
Originally Posted by lewdog
How do you guys determine whether to use a stop loss vs stop limit order?
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Or if you have a true long term play, whether to use one at all. Like we talked about before, if you sell you're turning a paper loss to a realized loss, and potentially miss out on the recovery.
There has been a lot of talk in the past week about how the broad use of these by the casual investor and metrics based algorithms actually contributed to the decline by making the selloff a self fulfilling prophecy.
Ultimately comes down to whether you anticipate a continued and prolonged drop below previous levels, or if you (as I do) foresee a somewhat expedient recovery.