I've done day trading in the past (and I did ok… considering I made more money than I lost), but I kind of lost interest in it.
I want to get back into it, but one of the things that annoyed me with my last run of day trading, was not being able to use a specific strategy, due to technical limitations of my broker.
So here is the question:
Is it possible to do THIS, when setting up a “OTO” (One Triggers the Other) Stock Buy / Order:
Place a OTO buy order, which happens if the stock hits a certain price (for example, it drops to $20).
Once OTO buy is ordered (once said stock hits $20), I would want 2 things to happen automatically / immediately:
– STOP LOSS Placed (IE: for 2% Below the $100 Buy Price)
– Trailing Stop Price (For Selling the Stock, if it Reaches a Certain HIGHER Price – IE: 2% ABOVE the $100 Buy Price)
But here is the tricky part: I wouldn't want the Trailing Stop Price to Happen UNLESS the Stock went up to a certain price (IE: $102, which would be about 2% Higher than the buy price of $100)
And then I would have the Trailing Stop Amount Be for like $0.20 or something.
This would be similar to the common technique where you set a OTO with a STOP Loss Price, Paired With a SELL Limit Price, but it would add in the potential for a much higher profit, if the stock price kept rising, and your trailing stop followed it.
The problem is, I don't think it is possible to pull this off using a “OTO” order.
Or IS it???
And if not, are there any similar orders that I would do, that would have the same effect????
Otherwise, I am limited to just the OTO with a hard set STOP LOSS and SELL Limit….
Leave a Reply