The Pitfalls of Stop-Loss Orders: Investing Smarter

 
November 30, 2020
 
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How to Profit From the
Presidential Election Cycle
Do you know what the presidential election cycle theory is? It's a theory that suggests equity market returns go through the same pattern after each presidential election.

The theory suggests that U.S. stock markets perform the weakest during the first year of a new president's term. During the second year, the markets recover and then peak the following year — only to fall once more in the fourth year.


Wall Street typically sees a lot of action during any normal election year, but we think it's fair to say 2020 has been anything but normal.

That's why WPTV asked Berkeley graduate and investing expert Dr. Richard Smith to discuss how this year's presidential election cycle could be giving us clues to how the stock market may play out differently over the next four years… and you won't believe what he has to say to us…
Watch him now!
 
 
The Pitfalls of Stop-Loss Orders
If you're an investor looking for a way to ensure the amount of money you lose on any given stock, then chances are you're familiar with stop-loss orders.

A stop-loss order is when a trader places a buy or sell order on their trading platform with a certain price limit on the stock. This limits the amount of loss an investor takes on the position and allows for somewhat of a security blanket if prices begin to move against the stock.  

For the most part, investors are able to remain relatively happy using this type of trading strategy and don't have to spend each day monitoring their trades...

But the hidden pitfalls of stop-loss orders could be the difference between making a $10 profit and making a $100,000 profit…
Here's what you need to watch out for
 
 
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Swing Traders tend to spend longer monitoring stocks and considering investment opportunities than day traders. Swing traders utilize both fundamental and technical analysis in their considerations. Since swing trading does not require hours of daily monitoring, it's a good strategy for traders who wish to explore stock market trading without treating it as a full-time job.
 
 
Disclaimer & Disclosures
The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed.  Please see our Terms and Conditions for more information.
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