Be the invisable trader.
Perhaps the greatest advantage of all, SPREADS ALLOW YOU TO AVOID STOP RUNNING! You will not be the victim of stop fishing when using spreads. You will have become invisibleto the market makers and market movers. They cannot possibly run your stops, because there aren’t any stops when you trade spreads. Spreads have exit points, but it is physically impossible to place a stop order in a spread trade. Spreads create a level playing field. Because there are no stops possible, spread trading is a more pure form of trading.
Learn how here:
http://www.spread-trading.com/option-spreads.htm
Learn about Options and other trading stratgies here.
http://www.tradingeducators.com/options/optionmatrix.htm
Stop Loss Order
Stop-Loss Order
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".
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".
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| Watch: Stop Loss Order |
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.
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
