A well written article that even the most novice investor can understand. I need to heed this info on the future. I just prostate too much and don’t get around to covering all my stocks with a stop.
Stop loss limits are often abused by traders on the NASDAQ exchange. Putting a 1% or 2% loss limit can automatically assure that your limit will be attained as soon as an exchange trader spots it, puts in a bid for that amount and steals your stock from under you. It has happened to me- especially if the stock is more thinly traded. This has not happened to me on the NYSE, just on the NASDAQ. I suggest that an “alert” be established if possible enabling the investor to engineer the trade and not be a victim of the unscrupulous.