What is: stop profit setting is when you buy stocks / shares, and at the same time determine how much you expect to earn as the stocks / shares increase in prices before selling the stocks / shares.
The stop profit value can be either a percentage or a fixed amount. Example: you buy stocks / shares at 100. You are satisfied with earning 20 before selling the stocks / share again, so you set a stop loss value of 120 or equivalent to 20%.
Why set a stop profit value at all ? - Because when stocks / shares start to increase in price, no one know the top - and therefore it is better to earn 20 and get out, than to earn eg. 15 - because the top was at 20 and you didn't sell.
Please note, that as time goes, you should reevaluate your stop profit settings.
Dealing with stop profit is easy in the software program Amateur Invest.
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Page update: 2017-01-12, 16:24:49:796