Personally I would not do it.

You wouldn't advertise a car in Autotrader for $10,000 and then put a small print saying "Will accept $5000"

 

I never heard of the type of order you're describing. It's certainly not possible with Investor's Edge.

 

Yes, it's impossible with CIBC.... but I've heard from somebody that some brokerages allow to have limit sell in % ... not sure how it works

 

Trailing stop is not a good idea unless you're aggressively day trading. It doesn't protect you when there's low liquidity or between trading hours, when prices jump.

 

I actually had this bad experiebce when just srated investing... i had limit sell on CLO (iSharesOil Sands Sector Index Fund ), during day trading price drop so sharp in just couple of minutes that my limit sell got overpassed

 

Don't you just use a stop price (where the sell becomes active) and the limit (optional, being the limit you'll accept)

And there is a ? next to the stop order, describing exactly how to use the stop sell order

 

Don't you just use a stop price (where the sell becomes active) and the limit (optional, being the limit you'll accept)

View attachment 487

And there is a ? next to the stop order, describing exactly how to use the stop sell order

View attachment 488

yes xoron
that second image is what I don't really understand.
I thought it was possible to use a trailing stop...as in if a share is worth 1$ today, and I want to protect myself from losing too much on it, I put a trailing stop of 10%...then if it jumps to 2$...it should trigger a sell at 1.80...and so on. Not sure where you enter the %...

 

hmmm...I guess the book "Investing for Canadians" (for Dummies) is wrong then?
here is the excerpt I reference right from the book:

6. Use the Almighty Trailing-Stop Order

The trailing-stop order is a nice variation on the stop-loss order that we discuss in the preceding section. This order takes the stop-loss order a step further by making it move upward with the stock but not budging on the down side. In other words, the stop loss trails the stock's price upward but won't adjust downward. You set the trailing stop at a percentage (or dollar amount) below the stock price.



For example, say your stock is at $50; you can set the trailing stop at 10 percent below and make it a GTC order. If the stock falls to $45 (which is 10 percent below $50), it's then automatically sold to prevent further losses. But if the stock rises to, say, $60, the trailing stop adjusts upward and would then be at $54 (10 percent below the stock's new price). Should the stock reverse and then fall, the trailing stop stays put at $54 and a sell order is then triggered. At that point you've protected 100 percent of your original investment ($50 per share) and the $4 profit, too.

Maybe this is possible with some institutions but just not on Investor's edge?

 

For example, say your stock is at $50; you can set the trailing stop at 10 percent below and make it a GTC order. If the stock falls to $45 (which is 10 percent below $50), it's then automatically sold to prevent further losses. But if the stock rises to, say, $60, the trailing stop adjusts upward and would then be at $54 (10 percent below the stock's new price). Should the stock reverse and then fall, the trailing stop stays put at $54 and a sell order is then triggered. At that point you've protected 100 percent of your original investment ($50 per share) and the $4 profit, too.

Maybe this is possible with some institutions but just not on Investor's edge?

The problem with a GTC trailing stop is that if the price jumps from 50 to 30, if your stop is market priced then you will sell at 30, not 45. If your stop is limit then it might shoot past it and not do anything at all. However you give away your hand for everyone to see, gaining essentially nothing.

 

I see what you're trying to do now. Set a loss % from the last high since you placed the order.

No, I don't think CBIC IE offers that sell order type. Basically you'll have to set a fixed price, and adjust as needed when the price climbs.

 

Some platforms do offer trailing stops. Gap risk (as braintootired mentions above) where the stock gaps down below your stop is always present. This is one of the reasons I learned about options - buying a put option as insurance protect against that gap risk. There is quite a bit to learn to be able to use options - so I'm not recommending it unless you learn what you are doing first - but that is another "option" to protect yourself.

As much as a stop order might expose you to gap risk, it beats the hell out of watching your stock drop 70% when a simple stop could have saved you. It's more dangerous in the Canadian market because they are so thinly traded.

 

Just to add that you can also protect against drops by selling calls against your stock. Temporarily cap your gains, permanently lower your cost/break-even.