Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: sonar69 Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36696  
Subject: Re: Stops, stops, stop it!!!!!! Date: 6/28/2001 11:24 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
ok....so in a good scenario.....I would put in a stop order at say...9.10....assuming that is the current bid (or lower) and as the day
wheres on, if it keeps going up I keep adjusting the stop up...9.25....9.50....etc.......and if, at the end of the day there is a sell off at
9.50, then I would be likely to come out ahead as opposed to if I just sat out the day and tried to get out at the last minute at a much
lower price......right? sort of??



You almost have it. You place your buy order first..say at $10.00 or what ever. THEN, you place a sell stop order at $9.20 or what ever you want to set it at. If your stock goes from $10 to $9.20 your sell order is activated. This does not mean that your stock will sell for $9.20. In a fast moveing market, it could sell well below $9.20. $9.20 is the activation price, not the sell price. Once your activation price is hit, your stop order becomes a market order to sell. Or, the stock could gap down the next day to say $8.50. Your stop order will be activated as soon as the market opens and your stock will sell for $8.50 or less.

Ok, lets say your stock goes from $10.00 to $11.00. You could cancel the first stop order at $9.20 and set another one for $10.25 or something, this preserving some profits.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (26) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement