The Pitfalls of Stop-Loss Orders
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If you’re an investor looking for a way to ensure the amount of money you lose on any given stock, then chances are you’re familiar with stop-loss orders.
A stop-loss order is when a trader places a buy or sell order on their trading platform with a certain price limit on the stock. This limits the amount of loss an investor takes on the position and allows for somewhat of a security blanket if prices begin to move against the stock.
For the most part, investors are able to remain relatively happy using this type of trading strategy and don’t have to spend each day monitoring their trades…
But the hidden pitfalls of stop-loss orders could be the difference between making a $10 profit and making a $100,000 profit…