Free stocks lesson on – Stop Loss Point
What is Stop loss point?
- When the stock prices keep going up, set up a sell off profit point. The purpose of making a sell off profit point is to ensure that you won’t loss the original profit desired when the price falls.
- When the stock prices are falling instead of rising, set up a sell off loss point. The purpose of making a sell off loss point is to pre-empt further substantial losses when the stock prices keep going down.
How to reap profits at the stop loss points?
Ways to set up stop loss point:
On rising ：Stop loss point needs to be correspondingly increased with the stock price increment.
On falling ：Stop loss point needs to be fixed at one’s determined level when the stock prices are going down.
Refers to the diagram Singapore stock: MapleTree Commercial Trust
By using a software to assist you, you can earn profit, closing the order by using sell off point as shown by the diagram above.
Trading stocks must have profit and stop loss structures.
Feel free to email us if you’ve any enquiries on Stocks, Futures, CPO, Forex or Commodities.
WhatsApp / WeChat : 012-475 7723