How do I sell shares once they RISE to a certain value, is this a limit order?

Question

I want to set up an order to sell shares once they increase to a certain level, since I won't be able to as closely monitor this. How do I set this up?

Answer 1

Yes, its a limit order. If you have a broker, just tell the rep what you want to do. If your using something like Scotttrade, there is an option on the SELL page to set the price limit.

Answer 2

Yes that will be a limit order.

I recommend when the stock is on the move up, to use a trailing stop to maximise your profit.

Trailing stop is like a limit order but is placed below the stock price. as the stock continue to goes up, the limit will follow at the price difference you specify.

So you will enjoy the maximum return on the stock rally but will immediately sell the stock position when the stock reverse back down, thus protecting your profit.

Example:

Stock now @ $1.00, trailing stop at $0.50 difference
Stock Move to $2.00 trailing stop move up to $1.50
Stock Move to $5.00 trailing stop move to $4.50
Stock Move back down to $4.50

Stock Sold at $4.50 You take a Profit of 3.50,
You enjoy the ride up and stopping out when the stock is going down.

This can be done automatically by telling your broker or if you are using online trading, most broker has this facilities.

You do not need to monitor this.

Hope this Help

Vote me if it does