This book (Stop Orders) provides a vital introduction for beginners, and a handy reference guide for those more experienced. Having described these tools, Stop Orders then moves on to examine their practical applications by explaining how to use the different stop order techniques when making your trades in the markets. The book is illustrated throughout with charts for stock indices, individual stocks, commodities and foreign exchange currency pairs to provide a range of real-life examples. This book covers everything you need to know about stop orders and how to make them work for you. Whether you are a trader, an investor, or a spread bettor, you should regard the stop order as essential in helping you lock in your profits and succeed in the markets.
Author’s Note:
This book covers the most important weapon in the armoury of any trader, investor or spread bettor: the stop order. The techniques described in this book are theoretically applicable to a wide range of tradable securities and financial instruments including equities, exchange traded funds, currencies, commodities, options, contracts for difference and spread bets. Throughout the book I use the terms securities and financial instruments somewhat interchangeably to refer to any of those markets.
Anything that is tradable at a price determined by the market could, broker permitting, have a stop order applied to it. In practice you will find that some brokers might limit the range of tradable instruments to which stop orders may be applied, and you’ll read more about this later.
My own inclination towards equity and index trading will be evident in the examples, but to show the wide applicability of stop orders I have included examples of commodity and foreign exchange trades. You will also find some additional contributions from currency traders in Chapter 14.
Part 1 of this book (Stop Orders in Theory) represents a compendium of the types of stop orders that exist. This part of the book acts as an introduction for novices, and as a handy reference for the more experienced traders, investors, and spread bettors who find themselves temporarily at a loss trying to remember – for example –which problem is solved by a stop-with-limit order. This part may be read sequentially or by dipping in to the chapters that interest you; and as such any repetition between the chapters is both intentional and necessary. You can think of this part of the book as describing the tools of the trade.
Part 2 (Stop Orders in Practice) offers a more hands-on coverage of the use of stop orders in real-life scenarios under real market conditions, illustrated with price charts for stock indices, individual stocks, commodities, and foreign exchange currency pairs. If you think of Part 1 as describing the tools at your disposal, you can think of Part 2 as describing real-life techniques for using those tools.
If this was a motor vehicle manual, Part 1 would tell you what the various controls do and Part 2 would teach you how to become a better driver. Experienced drivers may wish to cut to the chase by skipping forward to Part 2. You can always return to Part 1 for reference later.
Contents:
- Orders, Stop Orders and their Many Flavours
- Stop Order to Sell
- Stop Order to Buy
- Trailing Stop Order to Sell
- Trailing Stop Order to Buy
- Guaranteed Stop, and Stop with Limit
- Combining Stop Orders
- Trading Timescales
- Price Gaps and Whipsaw Losses
- Stop Placement
- Position Sizing
- Perfect Trades
- Imperfect Trades
- When to Hold and When to Fold
- Top Tips for Using Stop Orders
- Conclusion: The Case For and Against Stop Orders
Stop Orders: A Practical Guide to Using Stop Orders for Traders and Investors By Tony Loton pdf
Gregory Ball (verified owner) –
Great book
Zendaya Osborne (verified owner) –
An excellent well written book on the subject of stop orders. Tony goes into excellent detail to explain the various types of orders. Recommended
Mackenzie Rios (verified owner) –
An excellent book. Easy to read and text are in big enough letters. One of the best investment books that I have read during my 63 years of age..
Abby Garza (verified owner) –
Even if you think you understand stop orders, take a look at this — it opened my eyes to possibilities which are now being used in earnest to earn profits, where before I was chalking up consistent losses.
Judah Clayton (verified owner) –
Very useful book. I think it is important for anyone investing in the stock market to understand stop orders and limit orders very well,,, There are not many books available on the topic, I think. This is a good one for sure.
Bode Hester (verified owner) –
A lot of the information in this book can be found online. The types of stops and the definition of stops covered more than half of this book, which are relatively simple and frankly useless without any concrete example. There is always an outline to the stop orders but not enough detail or content to make this useful. The danger of buying and reading this is that, on finishing the book, one assumes he/she understand the use of stops very well when in fact they do not.
Buy other day trading books which focuses on money management, most will give you lucid examples of placing stops.
Liliana Morse (verified owner) –
I have bought many books regarding stocks over the last years. Most of these books,unfortunately ,although they have been rated with 5 stars are a waste of time and money. The way I see it, if you buy the 20 right books (on any subject), you have the basis to become an expert. I think this is one book that is included in my top 20.
Jaime Huynh (verified owner) –
Tony Loton has a very clear and simple to understand writing style. After filtering through various investment books and information sources, this book ranks highly up there. When you read this book, you will get a much clearer understanding of how to use stop orders to become a more sophisticated investor regardless of your trading vehicle, style or time frame. The book is also a good reference tool. My wife who is new to trading has also used this book as a good learning tool and highly recommends it to the less savvy female investors out there.
Oaklee Copeland (verified owner) –
Whether you Spread Bet or Buy & Hold, one thing’s become increasingly clear. Capital Preservation and Cost Management often differentiate the winners from the losers.
Think you’re already aware of all there is to know about capital protection and enhancement using Stop Losses? Then I suspect your’re mistaken, and that you’ll be amazed at what you can accomplish armed with the information in Tony’s Book.
Even if you take away just one useful tip, over time it could easily pay for your investment in this book many times overs.
So ask yourself, can I really afford to miss out on the savings / additional gains that an exceptional knowledge of this very important topic could deliver?
A great book by a guy that doesn’t just ‘talk the talk’.
Marcellus Walker (verified owner) –
I’ve been learning spreadbetting for about seven months and I have to say this is the first book I have bought that covers stop orders in any great detail. In the book, Tony Loton says something along the lines of ‘some people would think why would I want to use stop orders instead of limit orders, if by using a stop order my order gets filled at a worse price, rather than a better one?’. I was one of those people before I bought the book, but now I have an appreciation of when/why to use stop orders as opposed to limit orders. So it’s definitely been a worthwhile purchase and one I’ll keep in my spreadbetting library! I did find the first section a bit simplistic and dare I say repetitive, even as a relative beginner, and would have given the book five stars instead of four if there had been somewhat less to Part One (what are stop orders?) and more to Part Two (when and why to use them). Having said that, I have just banked a tidy sum after placing my first manually trailed stop order…
Amani Blackwell (verified owner) –
Just like the authors other book called “Position Trading”, this one is a must read for anyone who is serious about their investments.
Every aspect of ‘stop orders’ are explained in good old easy to read plain English but best of all the readers are given real world examples which enable you to fully understand each type of stop order. Its not often that I can read an investment reference book without having to go back and re-read chapters to make me fully understand what is being taught but the author manages it easily. Tony’s style of writing is superb for this type of material – keep the reader interested and not bored senseless, and properly explain each point.
I used to be a firm believer in the ‘long term buy and hold’ (or forget!) mantra, but after reading Tony’s books I have seen the light and my trading style has been completely changed as a result.
I believe that reading this book will maybe not guarantee you to make money, but it will guarantee that you will no longer lose money unnecessarily by enabling you to implement stop orders correctly and effectively. This book is a great companion to the ‘Position Trading’ book I mentioned earlier, so if you already own that book then buy this, and if you’re just buying ‘Stop orders’ then do yourself a favour and order ‘position trading’ at the same time because I guarantee you’ll be back here anyway to do so!
Joy Pitts (verified owner) –
highly recommended
Niklaus Heath (verified owner) –
THIS BOOK IS MORE LEAN TOWARDS SOMEBODY WHO USE BROKERS WHO CAN GUARANTEE THEIR STOP. i DON’T LIKE IT VERY MUCH.
Axton Barnes (verified owner) –
The author takes pains to ensure that a small number of very clearly defined concepts are correctly understood. And these concepts are well chosen – if a trader takes the trouble to read this book carefully, their trading will be safer, more responsive and more consistent for it. A modest ambition for a book, maybe, but none the worse for that. Highly recommended.
Hattie Christensen (verified owner) –
An excellent book. It is a complete guide to entering and managing trades using stops. A great book for novices who haven’t yet appreciated the different ways you can enter and exit trades and when these different approaches can be used.
Trey Hamilton (verified owner) –
Very good book. It is a simple topic but very powerful. The author has a great balence of “theory”, “what’s done in practice” and “model examples”, as well as “things not to do”.
Rowan Trevino (verified owner) –
I used this book to reinforce knowledge. Examples are too long and might no apply to US. The style of writing is extremely technical. Seems like a compilation of articles not very well connected.
Saige Moses (verified owner) –
A couple of years ago I thought Stop orders were easy, so I disregarded books like this one … then reality showed me that I needed to improve my “management” when buying or holding a stock , I really didn’t have the discipline that the stock market requires and that is expensive… this book gives me just that, an anchor and knowledge of how and why discipline, and correct entry and exit points are really important , it’s simple yeah but much more deep than I thought it was…. and my numbers have improve with this volume, I will repeat: this book it’s very important.
Israel Carr (verified owner) –
I have bought this book after trying to dig out information on refining my stop placement. The book covers the different stop choices when placing a trade and has some interesting strategies on using stops as a method for entering a trade as well as exiting it. It does it in simple language that can be understood easily. If you are a serious trader I recommend having this book in your arsenal.