Paring Risk with Limit Bids and Offers

 

Setting up trades that can be initiated with limit bids or offers is the main focus of this lesson. Such trades are a built-in feature of all ‘mechanical’ entries, and we can use them to trade single-share lots of a $3000 stock if we so desire. There will inevitably be losers now and then, but if the initial idea was a good one, there is no reason why we shouldn’t attempt a promising trade a second time. There are some examples in this lesson to illustrate the point.