Why You Should Be Using Stop Loss and Limit Orders
Investing is a percentage game. The lower you can buy a stock and the higher you can sell, then the more money can be gained. But in reality finding the exact bottom or the exact top of a stock is impossible, and most investors will tell you when to sell is the most difficult decision. The key is to use charts to buy a stock near its 52-week low and then firmly decide when you are going to sell (or buy and hold). Using Stop Loss and Limit orders helps you achieve these goals, and protects you from downside risk. …