Do You Use Stop-Loss Orders?
In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who writes:
Do you use stop-loss orders? If I get stopped-out, what's the best thing to do? Buy back the stock, or look elsewhere for another stock to trade?
Jason and Brendan note they have never used stop-loss orders primarily because they invest in businesses with the longer term in mind. It's OK if share prices fall in the short run, and sometimes this can actually present the opportunity for investors to buy more at better prices. But in many cases, stop losses help investors lock in certain losses by either taking an actual loss and/or worse, missing out on any potential future gains.
Will this stock be your next multibagger?
Give me five minutes, and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.
The article Do You Use Stop-Loss Orders? originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.