A stop loss is an order placed with a broker
to sell a security when it reaches a certain price and is designed to limit an investor's loss . A good stop based on closing prices is
one that is placed 3% below a rising
trend line. The stop is triggered only if
the stock closes at or below the stop....
There are three primary ways to set a trailing stop, two of which reset automatically. The three trailing stop methods are:
There are three primary ways to set a trailing stop, two of which reset automatically. The three trailing stop methods are:
· A percentage below the current price; The trailing percent stop trails price movements by a
set percentage, but only in the direction of the trend.
· A fixed number of points below the
current price
· A specific stop price based on a
technical indicator or support level that you adjust as the price of your stock
raises.
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