Stop Orders: A practical guide to using stop orders for traders and investors

This is a book entirely about understanding and using stop orders. Despite the constant urging of trading educators and others involved in the financial markets, there is still a large number of traders and investors who do not use stop orders to protect their open positions and their capital. Whether this is through lack of understanding or ignorance, it is a frightening fact. This book will contribute to a much greater understanding of stop orders by those who are smart enough to read it.

In Part One of the book, Stop orders in theory, Loton presents a thorough description of the various types of stop order, how they are used, and, importantly, when they are used. This part of the book is essentially an introduction to stops, aimed at beginners who are coming to terms with the use of stop orders in their trading. It is also a handy reference section for those with some experience, but who still struggle with the terminology and with placement of the various types of stop order. Part One covers everything from the psychology of trading with stops to the calculation and placement of stops based on a range of techniques including percentages and the use of volatility.

The second section of the book, Stop orders in practice, provides real-life practical examples of the use and application of stops. It is illustrated with examples from a range of markets – stocks, commodities, and forex – to show some real-time applications of the use and placement of various stop orders.

‘Stop Orders’ is a comprehensive guide that covers virtually everything you need to know about stop orders. It can be read by traders and investors alike, regardless of the markets they trade or the time spans within which they choose to trade. It is a well-written and extremely informative guidebook. It would be ideal if everyone considering engaging in the financial markets were to read this book, or at least, have it as a reference book in their trading library.