Stop Orders Don't Work
Let's say that, just a few days ago, you were sitting pretty with a big gain in Priceline (PCLN) at $680 per share. Your gut told you there was a lot of risk, so you entered that oft-recommended stop-sell order as a means of protecting yourself from giving very much back.
A stop-loss (a.k.a. stop-sell) order is triggered when the specified stock price touches a minimum price under the point at which it had been trading when you'd entered the order. There are two types of stop orders. Some convert instantly to "market" orders when activated, and others those that turn into "sell-limit" orders once they are triggered. ...350 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.