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REDDIT

How effective are Stop Limit Quotes

W
Oct 1, 2025 · 21:03

Im a novice, keep that in mind....

Testing out the waters with stop limit quotes. Invested in some tech stocks that people think will go higher, while others say they're primed for a crash/correction. Playing with small amounts of $, but using stop limit quotes to sell.

I monitor the 52 week highs (which these days keep hitting ATHs) and set the STOP to be 95% of that high, and the LIMIT to be 90% of that high. My gains in these stocks here have already increased by 10-40% in the past few months. Is that 5% gap big enough to create a likelihood that the sale will execute, in case there happens to be a quick drop in price below the LIMIT? Is there an ideal gap between STOP and LIMIT?

I really dont like investing in individual stocks, so Id just take the proceeds and reinvest in ETFs, or treat myself to a double scoop instead of a single scoop.