Monday, October 5, 2009

Take Goal-oriented Risks

Maintaining goal-oriented risks is one of the primary ways risk takers can shore up their portfolios to avoid unexpected losses. Using sell stops is one of the most efficient ways to achieve this goal. Sell stops are sell orders attached to particular stocks, which upon reaching a predetermined price are immediately sold. This keeps risk takers from falling prey to the sort of euphoria that would tempt them to hold onto the stock for too long.

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