posted
I use etrade to trade. Could someone tell me how to put a stop loss on a stock. Say if it falls to .0009, then I want to sell. Do I choose the "stop" option or do I choose the "stop limit" option?
-------------------- "Eat your food tina, you fat lard!"
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posted
Well stop limit means you don't want to sell it less then .0009 when the stop has met the .0009 limit. The problem with it is if it bypasses .0009 (.001 then .0008) or is moving to quickly down to fill your stop will become active but it won't sell unless it hit .0009 again. But if it continues down you lost it all.
Stop works like a market order. when the price drops to .0009 then it sells your stock on the open market whatever that may be even if its .0005.
So both have there flaws but a plummeting stock, I could risk not selling myself. I always use Stop.
They work on sells and buys (when you short a stock). Just hit Advanced button when your placing your order and select sell and stop and but in your stop order price. Thats it.
Ric
-------------------- Invest with your brain not with your heart.
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posted
Stop means if you buy stock for $1 a share and you put a stop/loss at .90 per share and it plummets down to .90... your stop order becomes a Market order and is sold as fast as it can but cant guarantee you will get sold out at .90 per share (but nowadays it can sell it off pretty fast unlike in the old days).. but either way you will get out of your position and limit your losses and protect any profits you have in that particular stock.. if at all possible use a trailing stop loss if not use STOP then put it in manually every day if your stock goes up.. some people put it .25 below the high of that trading day or the previous trading day... but everyone has different stops.. if you buy it at $1 per share.. perhaps put it .15 below that.. at .85.. that is just a suggestion.. you can put it below whatever price you want it at...
-------------------- Let the world change you... And you can change the world.
posted
Thanks for your advice guys...helps me out alot. Can't always be there when the stock goes down to sell it manually and needed to figure that out.
Thanks again.
-------------------- "Eat your food tina, you fat lard!"
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