Stop setting is a wide ranging topic with lots of opinions. For me, a tight stop depends on the issue, and what my goals are as well as my tolerance level for pain.
JOYG is one of the highest Beta stocks out there. My goal for my swing trade shares was to avoid pain, but leave a little room for the volatility of the issue and market. When I bought yesterday, I set the stop at 81.09 based on the hope that it would find some support at the 23.8% retracement level (about 82.75) and set my stop 2% lower.
So far today, the stop has held, but if the unemployment report disappoints the market tomorrow, I expect JOYG to blow thru my stop. If I am feeling lucky towards the end of the day, I may pull the stop and ride naked into night.... Yippeee ki yay!
Keep in mind that would clearly be a lotto play and a gamble.
There are lots of different ways to set stops, and I don't think any particular one is right. Day traders may set based on low of the day or previous day. Others may use support lines. Still others use a % stop loss. I do when I am in a hurry or can't get a clear signal on on short term support.
For longer term investments, I use the MA crossovers or just set a stop loss at 7%.
As our friends across the pond would say...MIND THE GAP!
I don't know if it will hold, but a close above the 23.6% Fib retracement would be very constructive IMO. This was a solid downtrend day, but we broke out of the down price channel at about 83.30, 83.40.
Good luck to all!
You should be okay...if you are an investor, and can be a bit patient. It is always frustrating to miss the best entry, but in the longer view, JOYG is a great stock IMHO, and I own it long term. Being a high beta stock, it also can be very exciting to swing trade.
Don't forget that this is EOM, with lots of portfolio re-positioning going on. I expect a big swing in the last 15 minutes. Lots of people going to dump because of fear of job numbers, Some will buy to re-position portfolios hoping to get a good price on good stocks. I don't know who will prevail, but it could be exciting.
I am a bit scared about tomorrow and the job numbers. With this kind of volatility, the market is way too edgy.
I was thinking about you when it crossed 83.
I assume that the general market malaise at this point is in advance of tomorrow's jobs report.
Odd that CAT is holding up better than JOYG today.
JOYG seems to be trying to stretch down to a gap fill from yesterdays close, as well as a 23.6% Fib 3 yr. Fib support at about the same level, 82.75ish.
I doubt if it makes that level today, but anywhere in the ballpark, and I will add 25% to my position.
Sell the news in play today, Traders booking profits, nervous buyers standing aside, more aggressive investors adding to or starting positions. There are a few investors left out there aren't there? Hello out there, anybody home? This news driven market is giving me heartburn.