Stop losses is another topic that I wrote about recently. Alan Farley has a very good article which covers many of the issues that people have with using stops. The article covers things like:
- Stop limit vs. stop market orders.
- Avoiding stop-running/stop-gunning.
- How to properly place stops.
- Dealing with gaps.
(via Online Trading)
P.S. In addition to Hard Right Edge there’s a ton of articles by Alan Farley at TradingDay.com.
