stop loss vs spread

[sam1202 0]

Hi

I have been using technical levels and risk amount (e.g., $30) for placing Stop Loss, wondering what role (if any) does a stock's spread play in "Stop Loss". Some stocks have 1 c spread while others such as TSLA have 23 c spread. Should a stock's spread be considered as an input to determining stop loss? Will appreciate guidance on this

Thanks

Sam K

 

[Abiel 475]

51 minutes ago, sam1202 said:

Should a stock's spread be considered as an input to determining stop loss?

Yes, the bigger the spread, the wider the stop. That's why technical levels should be used as stop loss, not arbitrary $ levels.   

[sam1202 0]

Thanks, Abiel