Stop loss - A stop loss is a simple concept designed to limit losses on shares. The investor simply sets a rule that when a share price falls to a certain level, he will sell the shares, no matter what.The stop loss could be specified in percentage terms: e.g. when the price falls to 90% of the price you paid, then you sell. So if you bought at 100p and they fell to 89p, the stop loss is triggered.Or it could be set to track the share price. e.g. when the share price falls 10% below its highest value, you sell. So if the shares were to increase from your 100p purchase price to 125p and subsequently fall by 10% to 112.5p the stop loss would be triggered.Some of the better investor software programs now incorporate stop loss "alerts". You specify the level of stop loss for each share or your whole portfolio, and the program alerts you of the stop loss level is breached.
Stop loss : a stop loss is a simple concept designed to limit losses on shares. the investor simply sets a rule that when a share price falls to a certain level, he will sell the shares, no matter what.the stop loss could be specified in percentage terms: e.g. when the price falls to 90% of the price you paid, then you sell. so if you bought at 100p and they fell to 89p, the stop loss is triggered.or it could be set to track the share price. e.g. when the share price falls 10% below its highest value, you sell. so if the shares were to increase from your 100p purchase price to 125p and subsequently fall by 10% to 112.5p the stop loss would be triggered.some of the better investor software programs now incorporate stop loss "alerts". you specify the level of stop loss for each share or your whole portfolio, and the program alerts you of the stop loss level is breached.
Stop loss