Page 281 - THE MARKET WHISPERER
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THE MARKET WHISPERER 27 7
SMART Not all stop loss orders are orders that stop losses. The stop
MONEY loss is also entered in cases where you want to limit a stock’s
drop in profitability.
Since, from the outset, we are trading in stocks with a good liquidity, I
would recommend you always use the stop market order.
One of my ways of coping with large quantities is to enter several sale
orders in the form of stop market at spreads of 5 to 10 cents. For example:
if I want to protect 3000 shares from drops in price, I will enter 3 different
orders at measured intervals of several cents per 1000 shares per sale.
Obviously for stock with high liquidity, this would be an unnecessary step.
Entering the Stop Order
