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Huntn

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My Dad made >$20k on Tesla stock recently, so I was inspired and although I stopped personally managing my 401k account, (turned it over to a managed Fidelity account when I retired), I have decided to put a small amount of $$ into my TDAmeritrade account and do a little trading.

I was amazed when I discovered that TDAmeritrade does not charge a commission for trade. This takes a little bit of a load off my mind, when I can get into and out of stocks with no charge! 🥳

One thing concerns me a bit, I used to have the impression that Stop Losses were effective as long as they are in effect, but I was advised by TDA customer service advisor in a discussion that Stop losses were only effective during normal market hours. That after market closure during extended hours they don’t necessarily work with a significant drop of the stock during that time.

As I recall during market hours a stop loss acts as a limit order, but once the price is hit, it coverts to a market order, and sells at the next sale price. But during extended hours the market is closed, so if the price is skipped it never executes, or it does not execute until the market opens and by then the price maybe well below the stop price you designated. Anyone know?

I’m scheduled for a tour of the Think or Swim Trading Software, so I’ll get clarification on this.
 
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