Stop Loss Order

Stop-Loss Order

What Does It Mean?
What Does Stop-Loss Order Mean?
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position.

Also known as a "stop order" or "stop-market order".
Watch: Stop Loss Order
Investopedia Says
Investopedia explains Stop-Loss Order
Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional decision-making.

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.


Read more: http://www.investopedia.com/terms/s/stop-lossorder.asp#ixzz1VQzc3UkP

Investment Links

Stop Loss Trading Tips for Long and Short Positions
www.rightline.net/education/stoptradingtips.html - CachedSetting Stops for Long and Short Positions. Here are a few suggestions on how to set stops for long (buy) and short (sell) positions.

Stop Loss - Definition of the Day Trading Term Stop Loss
daytrading.about.com/od/daytradingglossary/a/StopLoss.htm
Definition of the day trading term stop loss, with descriptions of the two most common types of stop loss, and a discussion of whether or not a stop loss ...

Setting Stop Loss Orders -- Technical Analysis Education
web.streetauthority.com/terms/s/stoploss.asp
STOP LOSS ORDERS: HOW SHOULD THEY BE SET? One of the most difficult arts in swing trading is setting the stop loss order. Put the stop loss too close to ...