Investors can also employ opportunistic strategies with buy and sell orders. One strategy for bargain hunters who love a stock but refuse to pay a high price is to pre-set a lower price that they feel is fair through a limit order.
Strategies can also be implemented involving partial positions. If a stock doubles, for example, a stop-loss on half the position can preserve the initial investment. It’s also important to know that a stop-loss might trigger below the pre-set price if a low-volume stock is in a free fall. It’s like firing a bullet at a fast moving target.
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