Message Font: Serif | Sans-Serif
No. of Recommendations: 0 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.
Print the post  


Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.
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.