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  1. #1
    Analyst BuffaloBull's Avatar
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    Default Stop Losses- TD Ameritrade

    Today TD ameritrade stop lossed me at one increment higher then my stop losses action price. I had a stop loss at .0142 for a stock and they stop lossed me even though the market price didn't go below or at .0142. It stop lossed at .0143. It's not a big deal in this case, because later on in the day, the market price went lower. However, as far as I was aware a stop loss only triggers when the market price drops to your action price or lower. When I emailed TD ameritrade, they told me that the stop loss triggers when the bid hits your action price. But everywhere I read about stop losses, it talks about market price triggering it. Is this guy BS' ing me, or is this normal? Or maybe its just unique to TD Ameritrade. I have a little trouble believing it is supposed to trigger when the bid hits your action price because there can be a great disparity between the bid and the ask throughout the day. What do you guys think?

    http://www.investopedia.com/articles...-stop-loss.asp
    It seems if I've learned one thing about trading (not investing), it's that success is built off the hope of the other dreamers. As long as you don't drink the kool-aid, you can take everybody's cash after they all discover it's been laced with Cyanide.

  2. #2
    Administrator ChuckD's Avatar
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    Default Re: Stop Losses- TD Ameritrade

    BB, When I use trade triggers on TDA, you can enter for it to trigger when the bid or the ask hits a certain price, your choice. I have never used it as a stop loss, but I know that you choose when setting a trigger.
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  3. #3
    Power Broker Aaron's Avatar
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    Default Re: Stop Losses- TD Ameritrade

    If it just hit it even for a split second, one trade, the stop loss will trigger. And again as chuck said mind your bid/ask
    if you only do what you only ever have done the only thing you will get is exactly what you got.

  4. #4
    Analyst BuffaloBull's Avatar
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    Default Re: Stop Losses- TD Ameritrade

    The thing is though, there was no actual trade at my action price. There was only supposedly a quick bid at my action priceand somebody bought it for higher, thus never hitting my action price with an actual trade. My question is this normal for a stop loss? I thought a stop loss was triggered by the last market trade price, not the bid price. Bids can be all over the place, at ridiculous numbers. Remember I didn't set a specific trade trigger that specified I wanted the bid to trigger. The Market Stop did that automatically. I will probably just use trade triggers from now on, but I just thought it was weird, and everywhere I read, it seems to suggest a market stop loss is hit by the last trade price.
    It seems if I've learned one thing about trading (not investing), it's that success is built off the hope of the other dreamers. As long as you don't drink the kool-aid, you can take everybody's cash after they all discover it's been laced with Cyanide.

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