although the FSLR trade posted below was a shorter-term trade based off the intraday charts, i am going to also add FSLR as a long-term trade/investment idea with an entry at current levels and the targets shown on the chart. stops on this trade will differ for each trader or investor and would be based on several factors such as which target(s) you are planning on holding out for. this helps you determine the R/R ratio on the trade. for example, if you are targeting a profit of 40%, then you can easily allow for a 10% stop loss because that would still offer a 4:1 R/R ratio.
other factors determining your stop level would be you own risk tolerance, trading style and of course, your entry level(s). as far as entries, if i were a long-term investor interested in a stock like FSLR today, i would use a scale-in strategy vs. taking a full position at once. e.g.- you could buy 1/4 of your normal position size today and continue to scale in with 1/4 sized lots over the next few weeks/months as either this european mess will either begin to dissipate (likely causing the market to move higher) or continue to deteriorate (bringing prices lower). there are many ways to skin a cat and many ways to trade or invest in stocks. that is the primary reason that i will always list clearly defined targets on the trade ideas posted here but encourage each trader or investor to choose the stop level(s) that fit their own unique trading plan and risk tolerance.