No. of Recommendations: 3
I'm not a trader. Stop loss orders are a trader's tool which is not good for buy and hold stocks, specially not for the high volatility NPI stocks. My broker used to recommend "mental" stop orders in lieu of real stop orders.

When a stop loss order reaches the stop price it becomes a market order and it can execute way below the stop price. If it was FUD the stock will bounce back and you have a huge loss. There is also the stop limit order which will trigger at the stop price and become a limit order. Often these don't execute when there is a steep drop.

If you are truly scared out of a stock, just sell it. Better yet, learn to control your emotions, our fight or fight instinct was developed to deal with survival in the African savannah, not on Wall Street! ;)

Since the start of the Tweeter presidency our NPI stocks have seesawed like crazy. Great for trading options but hard on longterm investors who watch prices daily.

Denny Schlesinger
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