| In this article I am going to give you a stock market | | | | when the market is in turmoil. They also prevent you |
| trading tip that will help you to protect yourself from | | | | from rethinking when to take profits and when to |
| market loss. | | | | jump off a sinking ship. |
| This stock market trading tip is to sell stops and buy | | | | There are the two most common methods used |
| stops cap losses. A sell stop order, also referred to | | | | when placing stop orders. |
| as a stop loss order, is an order to sell a stock once | | | | · Place the stop price below the support level; you |
| it reaches a certain price. When the stock reaches | | | | can identify this level by looking at a chart and finding |
| the stop price the order is executed and shares are | | | | the lowest points for the stock and previous points |
| sold at the market price for stock. | | | | where it stopped dropping |
| A stop limit order is an order to sell a stock once a | | | | · Place your stop price 5-15% below your purchase |
| specific price is reached, as long as the price does | | | | price, depending on your level of comfort. This will |
| not fall below the limit specified by the investor. If | | | | stop you riding the stock all the way down and will |
| the stock reaches the stop price the order is | | | | help you to keep your losses manageable |
| converted to a limit order. With both types of | | | | As you can see by using sell stops and sell stop limits |
| orders, if the stock doesn't reach the specified stop | | | | investors can protect themselves from volatile |
| price then the order will not be filled. | | | | markets and prevent massive portfolio losses. If you |
| Using sell stop and sell stop limits are key to | | | | enjoyed this stock market trading tip, if you want |
| protecting your investments. These tools keep the | | | | more online. |
| decision making process simple and unemotional, even | | | | |