How would we put in an order to close out 50% of our position with our broker?
The method to close half the position when first profit
target is reached will depend on your broker's platform. Your broker will be best placed to advise on
this.
Ideally, you will place the opening order
conditional on the stock price (or for an option the underlying stock)
doing what you need it to do, and attach a 'Bracket Order' detailing
your Initial Protective stop and your P1.
When P1 is touched, traded through, or gapped beyond, that
position part of your position will close for P1 profit, and all that remains
is to manage the second half of the position using Guy's dynamic trailing stop.
Related Articles
How would we put in an order to close out 50% of our position with our broker?
The method to close half the position when first profit target is reached will depend on your broker's platform. Your broker will be best placed to advise on this. Typically you would place a stop/limit order to open, with a 'Bracket' order attached ...
What order types (for stocks) does my broker need to support?
For stocks, options, CFDs and Spreadbets if your broker offers a 'demo' or paper trade account you can check out their order procedures and terminology there at no risk. They should also have an FAQ, and should be happy to guide you by online video ...
When you get triggered on day 1, are you happy to let it all automate? i.e. let you stop/limit take you out without looking at the charts again?
You have to manage your trade, profits, and losses, according to the trade plan. This means that you revisit every open position or order on a daily basis. First profit can often be automated by means of a limit order, it depends on your broker ...
Is it normal enough that after a trade is filled that it comes back into the flag (bull) and bounces along like that for quite a few days before it thinks about going back up through the original buy stop order level again?
This is something that can happen. Ideally when the stock breaks out it keeps going, takes out our first profit target and then some more on top, which you manage by use of Guy's Dynamic Trailing Stop. When the markets are breaking out big time ...
Are the trades placed before the market opens/during market off-hours or do I have to be present when the market opens?
If you are based in the UK and spreadbetting, we normally recommend that you place your trades during market hours to avoid gapping. If you are based outside the UK and/or trading stocks/options, you can place the trades outside market hours if the ...