Replies to post #21190 on Grapefruit USA Inc (GPFT)

[madtig6]

IMGGor-and I agree with you 100%- I have a "system" that alerts me when certain trigger pps is reached - then I decide what I am going to do. But, at least, I am alerted to the possibilities.
To not have a system in place for stop losses is investor suicide, IMO.

The point being, whatever you do, protect yourself from the possible "tanking" of the stock.

[IMGG4TP]

In response to IMGGorB and madtig, be mindful when entering a sell stop (stop loss) order that your order can and will be triggered when somebody enters a bid at your stop price. In other words, the "last" price of the stock does not have to sink and hit your stop point for your order to be triggered, as most people believe. If somebody, like an MM, bids your stop price, you are out of your stock, even though the "last" price has never even remotely approached your stop price. I know. Regretfully, its happened to me (I was prematurely stopped out, and immediately after, the stock skyrocketed).

PS: Some brokers allow their clients to enter "advanced" orders to protect themselves from this. This is cumbersome however, if you need to fire off an order amid intense volitility. Seems to me, and correct me if I'm wrong, that a market order to sell after your mental stop has been hit is the way to go. The downside however is that you have to stay in front of your computer, and never, ever, doze off.