can anyone advise me on stop losses. for example, if i buy at 1.00 and it goes to 1.40 , then what stop loss would i place?????????

You can set stop losses in terms of a percentage or by using technical analysis.
As you are asking this question I will assume you know little of TA.

In that case, my advice would be to set a maximum loss of 10 or 15% on your initial purchase. By doing so, you are protecting your capital. If the decision to buy that share proves to be wrong and the price continues to fall after your stop loss kicks in then you still have plenty of capital left to buy another stock.

If the share rises sufficiently then you can raise the percentage to no more than say 20%. This way you let a rising stock run without being taken out by 'noise' in the market.

The most important point with stop losses is that you STICK to it. Do not be tempted to wait to see how it does tomorrow or the next day. GET OUT when it hits your SL and buy a share that is going UP. Don't cling desparately to a stock that is going DOWN.

That's my advice. Some may see it differently.

Regards
Harlosh

thanks for the advice but still looking for advice on the buy at 1.00 scenario. any offers???

Hi CC, im assuming your buy at 1 is the mid price and you wish to deploy a 10% stop loss, your stop loss would be 90p, if you used a 20% stop loss you would be stop lossed out by your brokers database at 80p. That is the money you would have left to re- invest again. Hope that makes sense.

You can also with most online brokers also use an upward trigger aswell so that you can take profits. This again depends on your online brokers platform. If you want a 40% gain and wish your Broker to lock this in for you use a 40% profit lock in.

I agree with Harlosh in keeping to strict disciplines.

cheers Gf

Assuming you think there is still more to come from a 40% increase then 20% of 1.40 is 28p so your stop loss should be set at 1.12. Use trailing stops thereafter.