Don’t just hang out a"gone fishin'" sign. Make sure your contacts are up-to-date with your advisor and check your messages at least once each trading day.
Signing on for a DRIP automatically invests payouts in more company shares, which generate their own dividends, at no extra cost the investor. Placing “stops” on stocks during the summer can lock in gains if they rise in value and limit losses if they plunge. The real skill with any stop-loss order is where to set them. If you place them too close to the trading price they could be triggered by volatility unrelated to the specific security. In addition to losing a potentially lucrative position, investors could rack up unwanted trading fees.
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 allows them to pre-set a lower price that they feel is fair through an"open-limit order."