The point of the Stop Loss order is to prevent loss greater than you can accept
A stop loss order does what it says. It stops loss of value below a certain point that you determine. It does not allow you to participate in a rebound, which is uncertain. There is always volatility in the market. The Stop Loss order is intended to protect your asset from a potential loss greater than you are willing to accept. You can always buy the asset again if you are interested in potential market gains. Good luck!
QUOTE=44Apple;2076599]Do you tend to use stop loss orders?
I'm thinking of listing one for each of my etfs at the 10% loss point.
Seems like a holding could drop 10%, be automatically sold and then rebound the next day/week by a quick 8% or so and then I would be missing the rebound.
Thoughts?[/QUOTE]
|