Trailing Stop Loss Orders are a great way to manage your stock investments. Do they always work? Not always. They don’t mix well with volatile stocks. Why? Volatile stocks can swing widely – from euphoric highs to catastrophic lows. And you don’t want to be caught in the low pattern. It is tough, even for seasoned investors, to know the precise timing that would be the correct solve in a volatile stock equation.
If you have enough financial stability that you can accept the potential for the higher risks that come from trading with volatile stocks, then perhaps this part of the game is for you. If you have a low tolerance for high risk, you probably want to bypass volatile stocks and play with “safer” stocks.
If you try to place a Trailing Stop Loss Order on a volatile stock, you will likely discover that it is very difficult to pick a time or day of the week to place your stop loss order on the stock. It’s too inconsistent because levels can be breached for seemingly no reason, and then rally, and then fall again, and then rally, etc. Many times, there truly doesn’t seem to be a “reason” that anyone can really put their finger on as to why their patterns change as they do. If you have a penchant for risk, then perhaps you can enjoy placing Trailing Stop Loss Orders on volatile stocks, but if not, it might be best to stay away from them.
StopLossTracker is an easy and convenient option that helps you track your stock investments and their progress. It even offer weekly positions update, providing an overview sent to your email every week, listing your most critical investments at the top so you can assess their performance first. Enlist the aid of seasoned professionals to help track and monitor your financial investments. Try it free for 30 days and learn for yourself how easy it can make your life.