I am new to investing and I’ve heard many discussions of a % decrease sell rule. Let’s say 8%. For those of you that follow a ‘sell rule’ where you intend to cut losses at a certain threshold how do you take into account the spread? Would you base your 8% purely on stock price? Would you say 8% including the spread?
For an example let’s say that I wanted to get a position on a stock at an ask $16 with a current price of $15.80 but the bid is currently $14.50. That would be a 10% spread difference and essential surpass a loss limit of 8% already. Any thoughts or feedback on something like this?
submitted by /u/handytech
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June 02, 2017 at 08:20AM
from /u/handytech
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