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Know the Difference between Stop Loss and Limit Sell

Discussion in 'TIFU' started by DoveJohns, May 18, 2016.

  1. DoveJohns

    DoveJohns Active Member

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    Not that I didn't know the meaning of these but I did F things up today because of this. As you all know Fed released its minutes regarding the June rate hike during today's session and smart side of me knew it will move the market one way or the other and that it will most likely result in higher dollar...

    So I was watching Dust (gold 3x inverse) and as soon as I saw it started to go up, I bought in @ $13.28 as my first tier . (Was around $13.05 or +4% prior to minutes.) Anyways, then smart side of me also decided to have a cautious stop around $13.10 just in case it turns out to be a head fake... So I placed a stop loss (or so I thought) around 13.10.... Once I noticed it keeps going up, I added more at $13.40 as my second tier...

    It is currently $14.66 or +17.6% for the day... 10-15 min ago I checked how much I earned with my quick trade but the profit was much less than I expected. That's when I realized my not so smart side actually placed a "limit sell" instead of a "stop loss sell" which was sold for the current price of $13.33 with a small gain :eek:... Thankfully I didn't do the same mistake with my second purchase but I could have more doubled my profit if I didn't f things up... I wonder if it will also end up flagging me as a day trader on Robinhood app.

    Edit: Still going up... $15.00 (20%) now. Should I keep it overnight or sell now? I don't want to have another TIFU moment for selling it too quick or not selling it on time :D
     
    #1 DoveJohns, May 18, 2016
    Last edited: May 18, 2016
  2. StockJock-e

    StockJock-e Brew Master
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    OUCH!

    Lesson learned!
     
  3. DoveJohns

    DoveJohns Active Member

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    I was going to keep them all for at least another day but it went up too much and no need to be too greedy. I sold 1/3 for @ $15.32 ~14.3% gain. Will see how Asia will react overnight
     
  4. T0rm3nted

    T0rm3nted Moderator
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    Damn, sucks that you messed up the order, but congrats on the profit so far!
     
  5. DoveJohns

    DoveJohns Active Member

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    Another thing not to do: Don't get volatile 3x funds unless you can check the price and market often...

    Last time I checked in the morning it was in $16s and apparently it went up all the way to $16.90 (+10% for the day). I went for a work training and when I got back the price was down to $14.90 (-3%)... That's where I sold the rest of my position. Market doesnt look good and seems like people want to sell off and when they do, gold will probably go up again...

    Overall, 2 good lessons learned and still made a profit with the same trade. After all, I guess I cant complain that much...
     

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