All those who have even the most basic knowledge of trading and investing will know of the stop order tool. Stop orders can be used with any tradable security or financial instrument ? including equities, exchange traded funds, currencies, commodities, options, contracts for difference and spread bets ? to help manage losses and improve profitability. However, even though this is an essential ? perhaps the most essential ? tool available to traders and investors, it is often poorly understood and regularly misused.
Unfortunately many books on trading and investing only include a short section on the topic and gloss over the finer points somewhat. Tony Loton?s Stop Orders redresses this balance by dedicating a whole book to the subject.
In a lively and engaging style, Loton runs through the different kinds of stop order available ? including buy and sell orders, and trailing stops ? and then moves on to how to apply stop orders effectively at entry and maintain them properly until exit, how to limit downside risk by combining stop orders with effective position sizing, and explains what you should do if the market gaps and you get stopped out. In a particularly valuable section, the book examines the practical applications of the various stop order tools and outlines some ways to use different stop order techniques when placing your trades.
This book includes everything you could ever need to know about stop orders and how to use them effectively. Whether you are a trader, investor or spread bettor, you will find something of value here ? this book will help everyone to see the importance of the stop order for containing losses, locking in profits and, as a result, being successful in the markets.