I can’t figure out if we did something wrong, or what happened. But this is my perception of what happened -… within seconds of my placed stop order, the stock price steadily dropped to my exact stop price, my shares sold, and then headed right back up to the previous high, to go on higher. All within 5 mins or less.

I am aware stock prices fluctuate, but to my eyes, it seemed my lower “steal of a sale price” was noticed, somehow snatched up, and thing continued on upwards.

Prices can fluctuate, and I guess coincidences can happen. Or the more obvious answer may be that I didn’t place the order correctly, or understand what was to happen once I did.

My understanding was that this price was to execute only if the stock (naturally) dropped.. not to sell at this price immediately (which would otherwise seem kinda MARKET….).

I know this isn’t the case, but it seemed as if someone could read our price, got the stock prices to go down, grabbed ours at a “deal/steal” and then got the stocks to start moving up again. But I can’t grasp what did happen, likely because I have no experience, so likely a misunderstanding of stops altogether, or movement of stocks, in the least.

Any help in understanding this? Thanks so much for your time.

Thanks for stopping by and responding. It’s always nice to be able to develop an exchange will a fellow blogger.

To your experience with the missed USO stop, I can only say that in all my years trading (going back 20+) I cannot recall a single time in any market (stocks, futures, forex) where a properly placed stop order did not get filled. I do highlight the properly placed part there because I’ve certainly goofed on my order entries a few times along the way. It happens. Obviously the fill isn’t always at the exact stop price, but it’s always happened.

The first reaction I have when you say a stopped didn’t get hit is to question whether you put in the order correctly. If you are sure you did, then if I were you I would be all over my broker for the failure to execute.

If a simple stop order isn’t going to execute as designed then we all have to become day traders.

John

Now every broker, situation, etc. is obviously different so you bring forth very valid points. The definition from investopedia is true but only is a definition and how it should work, “in theory”. Most recently for example my personal stop loss on USO was traded through by a measily $.xx and never triggered. I found out several days later (vice the other rule) and to my surprise I was down another 10% on oil.

The way we write our content is based on personal experiences and what we feel is in the best interest for our 40,000+ monthly readers. So even if they don’t agree (which happens often) atleast they are exposed to what is in the realm of, “possibility”.

Again, thanks for taking the time to write up a contrarian post and they are always welcome. Apologies for the comment not getting through you wrote, not sure what happened there. We are revamping our comment system with the new site launch coming in February.

Cheers!

Blain (stocktradingtogo.com)