| Are you looking for a winning stock market | | | | fluctuate comfortably. |
| investment strategy? Keep reading, in this article I | | | | This stock market investment strategy can be used |
| am going to teach you a strategy that will save you | | | | for more than just limiting losses. It can also be used |
| a lot of money. | | | | to lock in profits; this is called a trailing stop. The stop |
| Basically this stock market investment strategy | | | | loss order is set at a percentage level below the |
| involves stop loss orders. This is an order placed with | | | | current market price and adjusts as the price |
| your broker that tells him to buy or sell a stock once | | | | fluctuates. |
| it reaches a certain price. These kinds of orders are | | | | Stop loss orders cost nothing to use, you will only be |
| designed to limit your losses and can save you a lot | | | | charged commission if the stop loss price is reached |
| of money. | | | | and the stock is sold. Also they allow your decisions |
| Another advantage of stop loss orders is that you | | | | to be free of emotion. Most people believe that a |
| don't have to monitor how your stock is performing. | | | | falling stock will rise again, they delay selling and |
| You just set the order and should the stock price fall | | | | hesitate. This causes them to continue loosing |
| to a certain level it will be sold. One drawback is that | | | | money, the advantage of a stop loss order is that it |
| the stop price could be activated by short term | | | | frees you from decision making (once the stock falls |
| market fluctuations, to prevent this choose a | | | | to a certain price it gets sold no matter what). |
| stock-loss percentage that allows the stock to | | | | |