Stop Loss Orders Expose Investors to Hidden Risks

By on May 14, 2010

The New Low Observer blog has posted an enlightening article on the hazards involved in using “protection” strategies. One of these is the popular stop loss order. Last weeks disturbing market action with the Dow plunging 700 points in a few minutes and recovering almost immediately highlights the risks investors expose themselves to when using seemingly prudent, but misguided, trading gimmicks.

Source: New Low Observer

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>