Stock Investing For Dummies, 4th Edition

Chapter 18

Using Trade Triggers and Advanced Conditional Orders

In This Chapter

Placing orders that trigger trades

Taking advantage of advanced conditional orders

In the age of knowledge, grasshopper, we must be one with the technology. Especially, locust, when technology can help you make more profit. In that spirit, uh . . . cricket, I take the topic of brokerage orders from Chapter 17 to another level.

Brokerage orders that you can automate on a website are (in my humble opinion) one of the greatest uses of technology. Chapter 17 is about placing single transaction orders, such as a stop-loss order or a trailing stop. In this chapter, I introduce you to more advanced brokerage orders, whereby it’s possible to enter a combination order containing two or more orders that may be triggered by market events (this stuff is cool . . .).

No one says that you need to use a trade trigger or an advanced conditional order. For most folks (even yours truly), the basic orders that I describe in Chapter 17 suffice most of the time. However, it’s good to know that if you encounter a challenging situation due to market conditions and/or your changing preferences and circumstances, you can structure ...