Ask Colin

Should I switch to an online broker for their live stops facility?

The deatiled question was:

As I work during share market hours, I prefer to place orders using online broking after hours. Currently I pay only $15 per trade. Would it be advisable to switch to one of the Internet brokers listed in Shares magazine (October) that offers stop loss orders?

It all depends on your trading plan.

If your plan is to trade signals based on the closing price - say if a price closes below a moving average or a trend line, or any indicator that is calculated on the closing price, then again you will not need an intra-day stop loss.

However, if your plan generates sell orders based on an intra-day price, then you may find it useful to use a service that allows you to have intra-day stop-loss orders in place.


 

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