Get your RS1 membership here now!  We use to make payments on-line with a credit card - it's fast and secure! Join Now
Take RS1's totally free two-week trial offer now!  Send no money! Free Trial
Very informative tutorial, explains how RS1 works. Tutorial
The most commonly asked questions of RS1. FAQ
Nice layout of all links at RS1 Site Map
Useful information about RS1. Help
Quick look at how RS1 began. About Us

Click here to send an Instant Message to LLH. Chat with LLH
Welcome to!
Home | Members Login | Classroom | Research | Message Boards | Contact RS1
Complete layout of navigational links at bottom of page | Page tab navigation

New York Stock Exchange trading hours are 9:30AM-4:00PM ET, except weekends & major US holidays
Click here to Login and view the list of 100 Rolling Stocks

Stop Orders and Stop Limit Orders to Sell

Previous? Next? Table of Contents

If you aren't familiar with them, you're going to be amazed at what an invaluable tool you've been missing out on. They don't cost a single red cent to use, but not using them can cost a great deal. Now let us bow our heads; for a moment with:

Stop Orders and Stop Limit Orders to Sell.

Suppose I have a stock that I bought @ $9.00 a share, in expectation of it rising to $15.00. After which, the price rises to $14.00 and settles. While still anticipating the stock to rise to $15.00, I can place a Stop Order as a safety net, at a minimum (more, but not less than) of .25 (.25=1/4 point) below the current bid price.

Now if the stock rises as expected, I can cancel my Stop Order to Sell and replace it with one of these two other types of sell orders; either a Limit or Market. Then I can execute the sell, for my originally predicted profit. Had I not used this tool, I likely would have sold at $14.00 in fear of the price sliding back down. Taking a portion my small profit with it.

In the event my venture is foiled and the price drops to the point where it's bid price strikes the same price as I set the Stop Order at, the Stop Order will become a Market Order, allowing the stock to then sell as such.

In this case, if the stock's bid price were to suddenly plummet below my Stop Order to sell, the stock would instantly sell at that unexpected lower Market price. Now if that bid price's fast drop took it down to say oh, maybe $11.50 or so, the stock would sell instantly at that price, irregardless of what the Stop Order to sell was originally placed at.

Exact same scenario only with a Stop Limit Order used instead of a Stop Order. When the stock's bid price drops down to where the Stop Limit Order is set. The Stop Limit Order then becomes a Limit Order to sell and the stock will sell as a Limit Order only. Meaning that in the event that the bid price abruptly drops below what I have placed the Stop Limit Order at, the stock will not sell. Because once that Stop Limit Order becomes a Limit Order, the stock can only sell at the exact price, that the now, Limit Order is set at. So the bid price will have to come back up again and meet the price that the Limit Order is at, before it can sell. If the price doesn't come back up and/or simply continues to drop; you are sadly, out of luck...sorry.

I'm not sure which is best. That decision would have to be made on a case by case basis. I most often choose the Stop Order to sell. But then again, that's just me.
Navigate RS1 with these links
Go to Top of Page

Members Log-in Here * The 100 Rolling Stocks * The Rolling Stocks Charts * The RollingStock100 Portfolio
Home Page * Home Page with tabs * memberships * Free Trial * Testimonials * Guestbook * Map of Web Site * My Email * Search RS1 * Tutorial * F.A.Q. * Help * About RS1 * News
Research * Research with tabs * Financial Sites * Stock Calculator * Currency Converter * Technical Charts * Look Ahead charts * S&P; Forecast * Random Symbols
The Classroom * The Classroom with tabs * Financial Library * Audio Tapes * Investing Dictionary * Forums Index * Netscape Users * Contact RS1
Odds & Ends with tabs * The Elves of RS1 * Auction * Classified Ads * Horoscope * Fun Games * Daily Joke * Short Stories * Swap Links * Add a Link

Today’s Markets

Member Of Candlestick Shop Banner Exchange
Let VectorVest analyze your stocks.
Enter Symbol
Get on the RollingStock100 "non-members" Weekly Emailing List. You get all new weekly info free "minus" the actual list of 100 Rollers:
Click Here to Join the Non-members Email List.
Get the 100 Rollers included... Free!

Member Of Candlestick Shop Banner Exchange

The Financial Ad Trader
The Financial Ad Trader
RollingStock100TM, 1998-2006, Disclaimer Statement
Direct questions about this website to