Use a broker that accepts limit orders and stop losses. Limit orders are when you ask your broker to buy shares at, or at less than, a specified price, or to sell at, or above, a specified price. If your order proves impossible, your broker will cancel the order. Some brokers accept limit orders that they keep open for the day. Others accept them on a fill-or-kill basis, which means they either execute the order immediately, at the price specified, or cancel it.
I will tell you why, if you aspire to a professional level of trading, you should use limit orders. You may apply them to CFDs, spread betting and forex, as well as to shares, and the strategy frees you from the need to watch the market incessantly.
A stop loss is where your stock is sold automatically at a set price level or after a given percentage drop. |
