A stop order is an essential tool used for money management and risk limitation, but for many investors and traders it is not terribly well understood.
Do you know how to apply stop orders effectively at entry, and maintain them properly until exit, so as to buy low and sell high, or buy high and sell higher?
Do you know how to limit your downside risk by combining stop orders with effective position sizing?
What will you do if the market gaps and you get stopped out?
This book provides the answers.
The author begins by presenting a thorough survey of the various stops available, including buy and sell stop orders and trailing stop orders. This provides a vital introduction for beginners, and a handy reference guide for those more experienced.
Having described these tools, Stop Ordersthen moves on to examine their practical applications by explaining how to use the different stop order techniques when making your trades in the markets. The book is illustrated throughout with charts for stock indices, individual stocks, commodities and foreign exchange currency pairs to provide a range of real-life examples.
This book covers everything you need to know about stop orders and how to make them work for you. Whether you are a trader, an investor, or a spread bettor, you should regard the stop order as essential in helping you lock in your profits and succeed in the markets.
About the Author
Acknowledgements
Foreword by Mike Baghdady
Preface
Introduction
PART 1: Stop Orders in Theory (the Tools)
1. Orders, Stop Orders and their Many Flavours
2. Stop Order to Sell
3. Stop Order to Buy
4. Trailing Stop Order to Sell
5. Trailing Stop Order to Buy
6. Guaranteed Stop, and Stop with Limit
7. Combining Stop Orders
PART 2: Stop Orders in Practice (the Techniques)
8. Trading Timescales
9. Price Gaps and Whipsaw Losses
10. Stop Placement
11. Position Sizing
12. Perfect Trades
13. Imperfect Trades
14. When to Hold and When to Fold
15. Top Tips for Using Stop Orders
16. Conclusion: The Case For and Against Stop Orders
Appendix
- Stop Order Facilities by Broker
- Recommended Reading
Index