The Pros and Cons of Stop Loss Orders
Stop loss orders are considered good strategy by most stock traders. A stop loss order is a special market order that you can set in advance. Almost all stock brokers today accept stop loss limits because there are a lot of traders that demand such service. When your stop loss order has been reached, your position will be closed automatically in order to minimize further loss. The broker then will buy and sell the stock based on prevailing market prices. Your investment therefore will not suffer heavily in case the market moves against your position. Because of this, the stop loss order is preferred by conservative traders. There are several advantages that you can enjoy from a stop loss order. First of all, a stop loss strategy will unburden you from the grinding task of monitoring the market every hour. By implementing this safety net, you will be able to… Read more »
