Most traders say .do trade with stop loss. I traded but most of times my stop loss hits and i land up in loss . than whts use of stop loss
2007-03-26 06:06:10 · 7 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Stop-Loss Order
What does it Mean? An order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position.
Also known as a "stop order" or "stop-market order".
Investopedia Says... In other words, setting a stop-loss order for 10% below the price you paid for the stock would limit your loss to 10%.
It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.
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How does a stop-loss order work?
2007-03-26 06:15:50 · answer #1 · answered by Anonymous · 1⤊ 0⤋
A stop loss is an order which is put into the market to prevent your losses getting out of control. Traders use stop losses in all markets. Some financial product providers insist on their clients having a stop loss entered, as this means that their clients cannot lose money which they do not have.
Ron
cccrc@airtelbroadband.in
2007-04-03 13:01:01 · answer #2 · answered by rvlcol 2 · 0⤊ 0⤋
Traders that use stop losses are for the most part momentum investors, that buy high and sell higher, but want to get out, at say 10% loss the most if the strategy doesnt pan out. My advice is to rethink the strategy.
2007-03-26 13:17:20 · answer #3 · answered by Ruben G 2 · 0⤊ 0⤋
If you think the loss is to continue and hope for profit is remote, you stop the process and stop the loss and thereby cutting away any probable profit too. To judge a situation needs expertise. No ready made formula.
2007-03-28 10:20:49 · answer #4 · answered by joy bharat s 2 · 0⤊ 0⤋
if u stop trading once u'll never ever b in loss ,u plz relax 4 some time.
2007-03-26 13:44:21 · answer #5 · answered by thundercope5 3 · 0⤊ 0⤋
Close your business to further stop your loss.
2007-03-28 03:56:46 · answer #6 · answered by cnkhadga 2 · 0⤊ 0⤋
committing suicide in anticipation of a possible murder. Only those do it who believe in reincarnation!
2007-03-26 15:43:14 · answer #7 · answered by Sharad 2 · 0⤊ 0⤋