Need help better understanding how I can do better with stop loss orders in the future.
Scenario: penny stock of biopharm company. Stock rose to around 0.043 this morning. An fda submission is submitted, awaiting approval. I’m quite convinced that this will be approved. However, past delays have tanked the stock. I’m also concerned that some of the recent upward movement is speculative and even after approval there may be a sell off.
With this in mind, I put in a stop loss order at 0.39 with limit at 0.37. Within 15min, this order is triggered. For context, the average daily volume is around 13million and I had roughly 1.5million shares in this order.
After all these shares were sold, the share price has climbed up to above 0.04 yet again.
What happened here? Is this an example of a stop loss raid? Did I set the stop amount too close to current price? Do these stop losses just not work well on these low float stocks?
What can I do better next time around?
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