Page 1118 - How to Make Money in Stocks Trilogy

104 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

But let’s say the stock doesn’t decline 10% and instead shoots up to
$200—giving you a 100% gain.
Your 10% trailing stop-loss order would be automatically adjusted to that
new current market price. Pretty convenient, right?
So now if the stock did start to decline and dropped 10% below the $200
mark, your sell order would get triggered—locking in the bulk of that big gain.

Use Conditional Orders Wisely

Using automatic trade triggers can be a great way to make sure you don’t
miss out on a big breakout—and safeguard your profits if a stock begins to
drop.
Just make sure you use them correctly. Talk with your broker about how
to set them up, and be sure to watch the market as often as you can.
Conditional orders are definitely convenient and a big help to busy
investors, but remember: There’s no substitute for staying engaged and
keeping a close eye on your stocks.