What is: stop loss setting is when you buy stocks / shares, and at the same time determine how much you will allow the stocks / shares to fall in prices before selling the stocks / shares.
The stop loss value can be either a percentage or a fixed amount. Example: you buy stocks / shares at 100. You do not want to loose more than 10 before selling the stocks / share again, so you set a stop loss value of 90 or equivalent to 10%.
Why set a stop loss value at all ? - Because when stocks / shares start to fall in price, no one know the bottom - and therefore it is better to loose only 10 than to loose eg. 50 - or 50% of your investment.
Please note, that as time goes, you should reevaluate your stop loss settings.
Dealing with stop loss is easy in the software program Amateur Invest.
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Page update: 2017-01-12, 16:24:49:696