| Stop-loss
Order |
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An
order placed with a broker to buy or sell when a certain price is
reached. It is designed to limit an investor's loss on a security
position, sometimes called stop market order.
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Set
a stop loss order for 10% below what you bought the stock for and
you will limit your loss to 10%. Stop loss order's are certainly an
undiscovered gem in the investing world.
It's also a great idea to use a stop order before you leave for holidays
or enter a situation where you will be unable to watch your stocks
for an extended period of time.
Note: Many brokerages won't place a stop-loss unless you phone them.
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