I had a stop loss in place for a few percentage points above what I bought a stock for. It’s been fine, but then unexpectedly, the stock drops a staggering 13%+ in after hours trading. This is not a penny stock either; it’s a very well-respected defense company (Rheinmetall).
Since it was in the after-hours trading period, my stop-loss did not get triggered, and the stock price is now below my current average price. I assume I’ll have to chalk it up to learning a very expensive lesson.
My question is: for future reference, is there anything I can do next time to prevent a similar occurrence? Or is there not really any safety-net mechanism for something like this specifically?