Wednesday, September 14, 2011

Cutting Loss

What is a Cut Loss Level ?

Its a price that we will have to sell the stock when it falls.
For example a person bought $1100 of Singpost Stock. If he tells himself at most he is going to lose $100, he will sell when the stock falls below $1000.

Or similarly it should be a maximum percentage loss that a person is willing to give up for example person A bought genting singapore at $2000 he is willing to give up 7%.

7% of $2000  = $140

Exit level = 2000-140= $1860
He should Exit at $1860.

Look at the link Genting Price

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