Market stop or market limit

I’ve made a bit of money so far thanks to COVID19 and I’m starting to wonder when the stock market is going to align with the economy in real terms.

Im contemplating whether to use stop loss or stop limit. I know the difference between the two but I’m interested to know what other people use and why?

Stop limit - sell only at price you specify
Stop loss - sell as soon as price is hit or lower (market opening)

Thanks.

Personally I use Stop Loss. Or at least I should when I remember to set them. :smiley:
But I always run it wide when I do, to allow the stock to breathe a little.

In regards to Covid19, I think it will all be ok in the end, so my view hasn’t changed, still Bullish but my expectancy is long term so I can ride the storm for the foreseeable future.

I think people are over exaggerating the FED and their involvement, sure they have injected money but I don’t think we are going to see a world with tons of inflation, if anything I think the net effect will be deflationary going forward.

Regardless what people wish to think, we are full steam ahead in a V shaped recovery.
Once a drug is developed I think we will see another surge in the markets like never before.

1-2 years, yea it could be choppy.
2+ years, it’s all good :money_mouth_face: :money_mouth_face: :money_mouth_face:

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Possibly but BP job cuts, RR and mulberry, this is just the beginning. With less people spending there will be smaller order books and less money circulating, something has to give. Have to review on case by case basis when companies release their latest figures. I think tech and healthcare are a huge bubble though, everyone is investing in them, sheep mentality, I think this COVID19 will die out like the first case of SARs so the money to be made from it might not be as lucrative as first thought

Glad someone else agrees lol.
Sold my Healthcare ETF’s recently on that same premise.

What I always come back to though, is what is the alternative?
Jobs are only being cut due to the virus, peoples sentiment is still keen and eager to resume normal life. So I’m happy that the nation is still work-focused and driven.

I don’t think tech is in a bubble, I think it is setting itself a new standard and if anything this break away from work and adoption of tech has been needed, as many generations were shying away from it, now they are embracing it.

What I do feel though, is that traditional valuation of companies is going to be harder and harder to do. So much I think will fall into the “special sauce” of each company which I just don’t think can be shown as a quantitative metric. Tesla for example is a company that has not seen profit since inception, but the secret sauce for them is Growth and Elon. (Note, im not invested in TSLA) but trying to find this in a set of accounts, well that’s the hard bit :slight_smile:

Adm to me BT is hugely undervalued. Look at their PB and Current ratio and the fact they have openreach. Then I look at the likes of Tesla and all it takes is for VW, GM to ramp up production of electric cars and Tesla is in trouble. Also capacity of national grids could limit amount of electric cars, is it even viable…Tech is the future but to me many of the oil companies are much better priced, industry isn’t going to change overnight and although it might reduce there are still gains to be had. There is an element of lock-in assets aren’t always easy or cheap to replace.

They were the biggest in UK, but now are not due to the merger that happened of Virgin and O2.
I think that’s the main reason it’s undervalued right now, is they went from being leader with near to no competition for the UK market, to now having to fight to stay at the top. + They were in talks to sell off their openreach division.

The only stocks im holding right now are BP and RDSB and about 7 Diversified ETF’s. I think the elec is here to stay but the oil companies are not going to go without a fight, im waiting to see what they do now. Can’t wait to see BP or Shell go into elec charging in a big way, it might happen :man_shrugging:. Like you said, the industry isn’t going overnight, 10+ years at the minimum but more than likely they just buy out the competition.

Look at how the meat industry is capitalising on the vegan product ranges. Same will happen with the oil industry.