This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Consider Trailing Stop Losses and Buying NYX

NEW YORK (TheStreet) -- Stocks had a great two-day run after reopening in the aftermath of "Frankenstorm" Sandy. As I write this article on Friday, I'm struck by the fact that we are approaching another critical event.

On Tuesday we in the U.S. will have the most important presidential election since November 2008. The media say the race is too close to call, so all I can say is that uncertainty and some angst may accompany the election's approach and its aftermath.

For those of us who own stocks, it's a prudent time to reexamine our exit strategy (you do have an exit strategy, correct?) and the importance of some kind of a trailing stop-loss system that will alert you when it's time to sell.

In September I wrote an article that speaks to the importance of this system as not only a safety net but as a way to make sure we let "our winners run."

In the article I made the following observations:

Usually, I don't like to enter these "trailing stop-loss orders" as standing orders with the brokerage firm where I trade my portfolio. As I wrote in an article yesterday, "When you enter them with your brokerage firm, the market maker may see your willingness to sell at a price below the current price and conveniently match your order up with some big client who is looking to buy at that price..." In other words, I don't want the market makers to see my stop-loss or trailing stop-loss orders."

That's why I like to use a system that the market-makers can't see, like the new version of TradeStops. It's a system that's been around for years and was recently updated with many helpful new features.

In essence, it's a system designed to keep us invested in our best positions while giving us a discipline to exit ones that are not performing as we'd anticipated. With the potential for increasing stock volatility or unexpected news that can cause a stock to plummet or soar in a "New York minute," we need to keep very close tabs on every stock position that we own.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,051.73 -48.45 -0.28%
S&P 500 1,973.63 -4.59 -0.23%
NASDAQ 4,424.7040 -7.4420 -0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs