There are many ways to trade stocks or ETFs. Most of the time, it takes a simple market or limit order to get the job done. But not always. Sometimes you need to add a condition when placing an order. A stop order or stop-loss order is the tool to use.
Conditional orders have a place in every investment strategy. When used properly, a stop order can help automate trades, enforce investment disciple and most importantly act as insurance.
Stop Order Defined
A stop order is a market order with a twist. It’s defined as:
A stop order, also referred to as a stop-loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. – SEC
Once that stop price is reached, the stop-loss order becomes a market order and the stock is sold at the next available price. Continue Reading…
All index funds are created equal. That’s what many fund families want you to believe. But it can’t be further from the truth. The difference is big enough, it could force some passive investors to actually do some work.
The last few years we’ve seen historically low-interest rates and a rising concern over interest rate risk. These low rates have been great for borrows looking for low-cost loans. On the other side, it’s been tough on savers forced into short-term fixed income assets while they wait for rates to rise.
One of the most popular investments in the past few years have been REITs, or real estate investment trusts. If you’ve ever been to an outlet mall, it was probably owned by a real estate investment trust. It’s just one way for investors to get into real estate without buying property.