Investing in stocks can be financially rewarding – it’s true. It can also be scary for beginners and experienced professionals alike. Depending on your stock, the world’s economy, and the climate/temperature of other investors, at any given time you could stand to lose a lot of money. You can make big money; you can lose big money. Stop Loss Orders can help protect your financial assets.
Stop Loss Orders Help Alleviate the Guessing Game
The best way to make sound investment decisions in the stock market is not by being blindfolded and throwing a dart on a stock market dart board. Although it can seem at times like that is just what you might as well have done if you find yourself with an unsuccessful investment. Stop Loss Orders help you find your winning strategy much easier and quicker by taking some of the mystery out of when to buy and sell a stock. Stop Loss Orders are the preventative measure between you and financial ruin due to potential extreme losses if you hold onto a declining stock too long.
Implementing a Stop Loss Strategy
Many successful investors utilize Stop Loss strategies for precisely that reason – it is more of a “sure” thing because you pre-determine the price point at which to sell so you don’t take a chance on losing more money than you can handle.
If you set a 10 percent stop loss order on a stock that costs $70.00, if that stock were to plummet to $63.00 per share, your broker would know to sell that stock. Stipulating a price point at which you want to stop “holding” the stock puts the order in definitive terms and leaves the emotional agonizing over what you should do – should you hold? should you sell – out of the equation. Leaving emotion out of financial decisions is usually always the best policy.
Try StopLossTracker for 30 days – FREE – and you will get a little taste of what Stop Loss Orders can do for you and why so many savvy investors put them to good use.