John asked the question,”When would you use a stop loss?”

I always employ a stop loss whenever I buy a stock. I see it is a form of insurance.
But it has a twofold purpose as it stops you having a too great a loss and you can use it to lock in those profits by using a trailing stop loss as the share price rises.

The beauty of a stop loss is it gives you peace of mind and stops you worrying about what the stock is doing. Particularly if you can’t follow the share price action because you have to be somewhere else and not sitting at the computer.

My advice to everyone is “Never leave home without one!” It is a small price to pay and they are worth their weight in gold literally.

Hope that is of some help John. :-)

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