Question

Given the uncertainty in today's stock market with the COVID 19 pandemic, what type(s) of orders (e.g. market, stop, limit, etc) should investors consider to manage their stock holdings and and desired stock transactions. Be clear in your assumed strategy for the portfolio and market drivers for the proposed order structure.  

Answer 1

I would always be looking for putting Stop losses in the current market scenario where the market is highly volatile and it would help me to to neutralize my losses and always keep them in check so that they cannot go beyond a certain extent.

Stop loss is concept of trading in which the loss related to a particular position of a trader is limited due to his risk limit strategy so you would always put a stop loss against the trade in another direction so that if there is an adverse movement, he would be getting out of the position when he thinks that the trends will change.