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.

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The article Do You Use Stop-Loss Orders? originally appeared on Fool.com.

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