ASX newbie

A stop loss is a very useful tool which if used correctly can lock in your profits and minimise your losses.A stop loss is usually set just below your buying in price. (NOTE your stockbroker can tell if they provide this service.) The level you set the stop loss depends on what level of risk is acceptable to you.

ONE HINT! do not have the stop loss to close to your buy in price [This is called a "Tight" stop loss] as a small deviation in price of just a few cents or so would cause your stop loss to kick in. A good figure that I use is around 2% of the total value of my portfolio. ie. $10,000 = $200 .