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Old 05-14-09, 01:57 PM
vinaysa vinaysa is offline
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limit sell question

How can I accomplish the following requirement?

I bought a stock for $9.00. The current price for the stock is $9.5. I would like to setup a open order so that the stock are sold if the price goes to $9.2 or $10.00.

Thanks.
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Old 05-21-09, 12:21 AM
777twist 777twist is offline
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Well, based on your example I think you want a Trailing Stop...

But first, to do a LIMIT Sell, just click sell and change the Order Type to "LIMIT." Then put in the price you want it to sell at. In your example, you would want to put $10.00 as the limit sell price.

But if you wanted to lock in your profits at the 9.20 area, but still have the ability for upside, then you can use a "Trailing Stop" where you set your stock to Sell, then change the order type to "trailing stop" and edit the Stop Parameter (not sure how your software lists it) to .30 cents. Basically, the trailing stop creats "highs" where that becomes the new level to base your retracement on. So if you set your parameter to .30 and the stock doesn't go higher than 9.5, then when it reaches 9.2 it will change your order to a market order and execute (not sure how this works on thinly traded stocks).

But if your stock say goes to 9.80, and then comes back .30 cents to 9.50, then your stock would sell in that area. If your stock keeps going...10, 10.5 etc... then you will lock in all those profits minus the .30 cent retracement you are setting in the parameter.

Hope that helps.

Also, I have yet to use the trailing stop... I pretty much stick to Limit orders. But if you can't watch throughout the day, then a trailing stop may be your friend.
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Old 05-21-09, 11:58 AM
vinaysa vinaysa is offline
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Thanks 777 for the detailed explanation. I am using Scottrade and there is option of 'Trailing Stop'. Will try to use it..

Thanks.
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Old 06-03-09, 09:30 AM
Pearlpam Pearlpam is offline
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Really very, thank to 777 for the detail explanation, because i am very much confuse with the concept of tralling stop, so thanks again.
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Old 06-15-09, 11:24 AM
Advice Pro Advice Pro is offline
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Are these terms the same or alike and aren't they different from a limit order?

Stop Order
Stop-Market Order
Stop-Loss Order
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