Hi guys,
I am a beginner and I am left with a dilemma. I have been building my portfolio of etfs for the last year. Now I have quite a bit of cash invested and I was wondering whether it makes sense to have stop loss in places.
What I was thinking is to create 3 levels of stop-loss orders. For instance, say I have 300 shares in VWRL bought at 80$/share and the current price is 85.5. In order to lock some profit I was thinking to add stop-loss at the following levels:
- 150 shares at 83 (drop from current price of 3%)
- 75 shares at 81 (drop from current price of 5%)
- 75 shares at 80 (drop from current price of around 7%)
The rationale is that I would like to avoid situations like the one happening in March when there was a drop of around 30% and maybe be able to sell before the drop and buy back when it is cheaper.
Is this something you guys do for ETFs? Does it even make sense?
Could you explain me what is the best strategy to place stoplos orders on etf?
Submitted November 24, 2020 at 03:49AM by Snoo_86970 https://ift.tt/2J53ba7
