Stop Is Hit
A stop price is an automatic order to buy or sell a security at a predefined price. Some trading systems or trading models may use buy stops in the stock market to enter the market on a pattern breakout. Most non-professionals use stops mainly to sell a stock that has gone down instead of going up.
For example, if a stock is purchased at a price of 50 with a target of 65, a stop of 45 might be used. This could be the break of a support level, a simple percentage below the original purchase price, or an acceptable risk given the potential reward. In all cases, the losses are limited.
Selling at a stop price takes the emotion out of the decision. The stop itself is a clear indication that you were wrong to buy. Do not hesitate. Cut ...
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