Stop losses are similar to sell stops but are aimed in the other direction. Instead of attaching a sell order to a stock on the basis of its rise in value, stop losses are sell orders placed on stocks that fall below a certain price. By utilizing stop loss orders, risk takers can decide beforehand exactly how much they are willing and able to lose so that they need not worry about the pitfalls of euphoria clouding their judgment.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment