Daytrading question

[izard]

Sometimes I gamble. Now is a great time for that, plenty of volatility. I don't use leverage so it is not very entertaining.

So far I like it, and earning a bit more than losing on both ups and downs. But there is one thing that where I often err, and I am not sure why.
Here is my rookie question to more experienced traders:

I spend $1000 buying 100 shares at $10.00 each. In one hour, my sell price is at 10.05. I can close at $5 profit, but instead I move my stop loss to 10.02 and take profit to 10.10. In the following 10 minutes, price bounces between 10.03 and 10.09 few times, then it drops from 10.03 to 9.94. My stop loss is then executed at 9.99, and I just lost $1 instead of earning $2.

The numbers above are not too fictional, small losses happen as described above with my trading style. I wonder if it is expected that the broker sells below my SL?

Comments

[sab123]

Так это классический пример, почему использовать limit order - неправильно, и как рынок специально раскачивают, чтобы стряхнуть limit orders и пожать выгоду.

[norian]

казино сделано чтобы профессионально выкачивать бабло из лохов

Say "no" to "stop loss" orders

[dennisgorelik]

> Sometimes I gamble.

Yes, what you described - is gambling. That sort of gambling where you, generally, lose money.

> I wonder if it is expected that the broker sells below my SL?

Yes, of course.
There is no guarantee that you will be able to sell at your stop limit.
Stop limit triggers sell order at market price.
By the time stop threshold reached -- there likely to be no available bids to buy at your "stop loss" price.
So you will be selling at lower price.

With your stop loss orders you destabilize the market and you pay for that (with your losses).

A profitable strategy, generally, is to use limit orders only. If you need to sell -- move your sell order down (but still keep it [slightly] above the market). Then you will sell when market jump.
You will stabilize market [a little bit] and will profit from it.