Sell Stock If Price Drops
If you put a stop limit on the order 15 stop limit the stock can sell through your limit and not get executed.
Sell stock if price drops. If the secondary offering is a sell off for a major investor research the shareholder s relation to the company. If it s close to the market price it could be a good sign but if the secondary offering is for lower than the market price it s a sign the stock could be ready to drop. Say that you bought one share in abc company at 10.
The actual price at which you sell the shares may be different from your stop price. An order at 15. No worries limit orders to the rescue.
Stock prices can drop for many different reasons. However if the stock rises from 10 back to 15 you have a 5 gain but it has to move back higher for you to gain the 5 per. Just put an order in to sell the stock at 15 stop.
If the stock is falling quickly your stop may be completed at a much lower price than you planned. In other words your stock won t be sold for any less than 33 45 per share. Here s how it works.
In your mind you saved 5 but you didn t actually earn a 5 profit. Here are a few other posts about the market you should check out. If the stock rises above that price before your order is filled you could benefit by receiving more than your limit price for the shares.
Download my free stock market crash survival guide and learn everything it takes to identify a crach and protect your investments. Suppose you buy 100 shares of xyz at 100. You want to sell those 10 shares if the stock reaches the price of 91 50.