1
/
of
1
store-traders-com
Stocks & Commodities V. 24:2 (28-32): Sell Using Stops by Thomas Bulkowski
Stocks & Commodities V. 24:2 (28-32): Sell Using Stops by Thomas Bulkowski
Regular price
$2.95 USD
Regular price
Sale price
$2.95 USD
Quantity
Couldn't load pickup availability
Stocks & Commodities V. 24:2 (28-32): Sell Using Stops by Thomas Bulkowski
The use of stops separates the professional trader from the amateur investor.
It doesnt matter what price you paid for a stock. What matters most is what you sell it for. Do you spend more time researching a buy candidate than you do a sell candidate? Thats not necessarily a bad thing. I know Ive turned on my computer only to discover, Hey! I sold a stock!
The easiest way to sell a stock is to use a stop. Its painless. Once the stop is in place, its almost worryfree. Itll do its job regardless of whether your computer crashes, your neighbor cuts your phone line, or even if you forget to check in while on vacation. If youre not making money in todays markets, one reason may be that youre not using stops. Why risk an immediate loss when you can hold out for a larger one? Thats how amateurs approach trading. Its also why so many seem to lose so much. Stop-loss orders can help change that.
THE STOP
Place a stop-loss order below the current market price. When the stock reaches or trades below the stop, the stop order becomes a market order. In a fast-moving market or a thinly traded stock, you may be stopped out for more than you imagined. The stock may gap open lower, say by 30%, taking you out of the game for a hefty loss. To avoid that, buy stocks that only go up. Of course, thats like saying the best cure for insomnia is to get a little sleep.
The use of stops separates the professional trader from the amateur investor.
It doesnt matter what price you paid for a stock. What matters most is what you sell it for. Do you spend more time researching a buy candidate than you do a sell candidate? Thats not necessarily a bad thing. I know Ive turned on my computer only to discover, Hey! I sold a stock!
The easiest way to sell a stock is to use a stop. Its painless. Once the stop is in place, its almost worryfree. Itll do its job regardless of whether your computer crashes, your neighbor cuts your phone line, or even if you forget to check in while on vacation. If youre not making money in todays markets, one reason may be that youre not using stops. Why risk an immediate loss when you can hold out for a larger one? Thats how amateurs approach trading. Its also why so many seem to lose so much. Stop-loss orders can help change that.
THE STOP
Place a stop-loss order below the current market price. When the stock reaches or trades below the stop, the stop order becomes a market order. In a fast-moving market or a thinly traded stock, you may be stopped out for more than you imagined. The stock may gap open lower, say by 30%, taking you out of the game for a hefty loss. To avoid that, buy stocks that only go up. Of course, thats like saying the best cure for insomnia is to get a little sleep.
Share
