Setting the Stop-loss when Day Trading Stocks & ETFs

[JLJ 10]

I have a clear idea of when to enter, and if the stock or ETF price goes straight up (which rarely happens), it's not hard to know when to get out. But I'm really lost when it comes to setting the stop-loss. Usually the prices waver so much - it seems (to me) quite unpredictable. Either I set the stop loss very cautiously to minimize possible losses - then a minor price drop kicks me out then the price goes right back up so I wish I'd stayed in! OR to prevent that problem, I set the stop loss too low and the price drops and drops and drops and I end up losing money. I'm studying my bad trades and I just can't see a pattern, except that whatever I do (re: setting stop losses) seems to be wrong.

I know I have a great deal to learn about technical analysis, problem is I don't know where to start.

Thanks for any advice!

[Tams 20]

put the Bollinger Bands on the chart...

and observe the price behavior around it,

it might give you an idea...

Edited June 1, 2010 by Tams

[JLJ 10]

thanks! I'll try your suggestion.

[Number5 10]

Ok, I'm a beginner who doesn't know much but I'd say if there is a problem you can't just focus on stops...both entries and exits must be considered equally. So don't rule out the possibility that you need to refine your entries. For example, if you are continually getting stopped out for a loss you don't want to keep setting your stop losses lower and lower. Instead it would be better to keep your stop losses fairly close and work on refining your entries.