154. How to Trade Stocks Using a Stop Order

[modo203]

I don't think the statement starting from part 1:19 is correct.

it's quite the opposite:

A stop order is set to SELL a stock BELOW the current market price OR to BUY a share of stock ABOVE the current market price.

please change it as it confuses beginners and could cause them to lose money.

Cheers,

[wordsworth727]

You said use a stop order is when you buy a stock BELOW the current price or if you want to sell ABOVE the current market price. You described the stop limit directly opposite- I think you made a mistake.

[youracharacter]

wow confusing.

[averageneo]

does thinkorswim allows stops be placed only a penny away from the current price? not on the demo, but on real live trading. scottrade limits 10cents stops. thanks.

[InformedTrades]

Dave knows much more about TOS than I do and he is currently traveling, but if you need an immediate response stop by InformedTrades and there are several traders on there who use TOS and can answer your question for you.

Thanks!

[daddylionn]

thatz right, but you confused people by saying it the other way. rephrase that in another video if you really care. rest, this is confusing. i know bare basics of the trading and this is confusing me even when I know stuff.

[lti12]

then you would use a stop, right?

Do you also use a stop when you own a stock and lets say if a stock goes from $25 to $40 so it will sell it for you automatically if it hits a higher price? The stop limit is the one I really dont understand. I need someone to explain to me in a simple form the way I bin doing here.

[BillGatesNeighbor]

I'm the same way confuse! for me you can just use limit sell or buy & if you want it on a certain price simply put GTC & it will pretty much do the same for you so I'm really not understanding this coz pretty much the limit feature does this for you anyhows so why call it other things.

[lti12]

Hey man you just confused the crap out of me.

Here is how I been told it is. And i am hearing something different here. I have bin told that before you buy the stock lets say its at $30 a share. You think it will go down to $25 a share.

so you place a limit and when it goes down to

$25 a share the stock is bought for you automatically. A stop is when you already own a stock and want to minimize your loss. lets say you have the stock at $25 and want to get out if it hits $15 a share.

[veragopa]

Hi Dave

Why people buy stocks with a stop order. I mean why they buy stocks for a higher price than the market and vice versa....

[InformedTrades]

Hi Veragopa, An example here would be a trader that wants to buy a stock only if the stock breaks an overhead resistance level. Best Regards, Dave

[daddylionn]

thatz right, but you confused people by saying it the other way. rephrase that in another video if you really care. rest, this is confusing. i know bare basics of the trading and this is confusing me even when I know stuff.

[tarmizitaha]

superb video

[InformedTrades]

glad you liked it. Thank you for the comment and for watching. Best Regards, Dave