trailing stop. you can set it in a $ amount, or a % amount. a limit order will is saying that when a price reaches a specific price, you will sell the stock at that price.
For example, if you own a stock at 50 cents, and you set a stop/limit order at 55 cents, the stock goes up to 60 cents, then down to 36 cents, then back up to 60 cents, you would have sold it at 55 cents, and that stock would have never even seen it go down to 36 cents, and up to 60 cents.
If you had set a stop loss at 40 cents, if in the beginning of the day the price was at 50 cents, then went up to 60 cents, then down to 36 cents, then back up to 60 cents, you would have sold it at 40 cents, before it going down to 36 cents, and def before it going back up to 60 cents.
If you set up a trailing stop loss, if you set it for... $.03 trailing, if the price starts at 50 cents, then goes up to 60 cents, your trail will move with the current price to 57 cents, then when the price drops down to 36 cents, you will have sold it at 57 cents, then when the price goes up to 60 cents, well, you had already sold it at 57 cents.
I own XYZ stock and it opens at 50 cents. I have a Stop Order at 40 cents and 2 hours later it is trading at 36 cents. At the end of the day the stock closes at 60 cents. My Question is what kind of order should I have used to stop the slide AND take advantage of the spike in price?? (The above is just an example, I don't own any stock yet)
