Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Ok.....I am totally, but hopefully not irreversibly confused.....I have not used stops before, restricting my trading to limits and a few market orders......

I've read the posts on stops......I've read the glossaries and explanations on various sites, and I suppose the only way I'll understand it is if I use an example, and then try it...here goes....tell me whats what......

I bought XRX at 8.80...its finally made a little headway.....my "system" says get out with ~$40-$50 profit, or there-abouts.....my target is 9.60......I know I can put in a limit order for that and hope it will get there......since I am not home during trading except for lunch, around 2-3 est, I figured a stop at 9.60 would have some advantages.....1)if it gets there and drops while I'm gone, I'll probably still be ahead 2)if it hits and goes UP, I'm ahead just a little more 3)if nothing happens before I get home for lunch, I can see whats going on and maybe make an adjustment. Not a perfect setup but workable, I believe.

Now here is my problem....at least I think.....when I access my brokers site I select Sell...Stop...my stock...shares...and stop price (9.60) when I hit place order I get an error message that reads, in part "...stop price must be lower than current bid price..." I don't get it...if I am selling, but don't want to until a specified price is reached, then why oh why am I restricted to setting a selling price that seems to me to be below the current price???? Is this correct or is there some reason my broker would limit transactions this way?

Mike

Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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