With Risk Management You Sleep Better & Invest Better - StopAlerts Can Help

Knowing what and when to buy is only part of the road to investment success. Knowing what and when to sell is the other part. Too many otherwise good investments go bad, by riding them up to profits and then down again to losses. StopAlerts will notify you by email when an end-of-day price condition you set occurs so that you may take an appropriate action to preserve gains or prevent losses.

StopAlerts are not the same as stop loss orders - the two can be used in concert or alone.

No credit card necessary unless you decide to subscribe, then only $125 per year (You can save a multiple of the subscription fee the first time StopAlerts helps you make a timely exit from a deteriorating position).


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Know the Important Differences Between Stop Loss Orders and StopAlerts

Stop Loss Orders

Stop loss orders are set up in brokerage accounts, and are tracked intra-day, and automatically close positions when certain conditions are met.

The good thing about them is that they watch your positions on a tick-by-tick basis during the market day, and react instantly to adverse price conditions with sell execution orders. The bad thing about them is that sometimes those tick-by-tick price changes result in transitory steep drops in price that are quickly reversed, yet stops are activated and positions are closed at sometimes unreasonable prices - with you needing to re-enter the position at a price higher than your sell price. The May 6, 2011 "flash crash" is an extreme market-wide example. It could happen again, and it happens with unfortunate frequency on a stock-by-stock basis.

An undesirable aspect of stop loss orders is that most brokerages do not allow the stop-loss order to remain indefinitely. That creates a difficult management process requiring you to be constantly aware of stop loss order expiration date. Once the order expires, it is usually impossible to recreate the expired conditions (read more on that). Generally, you cannot change the trigger conditions on a stop loss order once set even if you change your view on what the trigger conditions should be. Some brokers offer non-expiring stop-loss orders, but with potentially unsafe trigger conditions (read more on that).

Finally, it is not possible to apply stop loss order to mutual funds, which are a significant part of many investors portfolios, particularly in 401-k and related retirement accounts.

StopAlerts

StopAlerts is a monitoring service that measures the closing prices of stocks, ETFs, and mutual funds each day.

It compares those prices to conditions you have established, and notifies you overnight by email if the conditions you set for a disciplined sell process are met. StopAlerts do not expire. They continue to run until and unless the sell conditions you established are reached. You can change the trigger conditions at any time, and you can view the status of the price of each security relative to the StopAlert triggers 24/7.

StopAlerts notifies you by email. With your smart phone email, StopAlerts can reach you wherever you are. Or, with your computer, a quick email check once per day is all you need to be in the know. You don't need to be logged into a computer all day watching over price charts, or to do tedious daily price lookups and calculations to determine what you should do.

See a sample email notice here.

Because StopAlerts do not close positions for you, they give you the opportunity to apply judgment to make sure that a sell is still reasonable. The May 6th flash crash would not have had the same results as with stop loss orders, because the crash lasted only minutes before substantial recovery. With StopAlerts, you would have had the choice to sell or not sell after looking into the situation.

Finally and critically, StopAlerts work equally well for mutual funds as for individual stocks, exchange traded funds and mutual funds. That makes them an effective monitoring tool for 401-k accounts based on mutual funds, or any other mutual fund holding.

No credit card necessary unless you decide to subscribe, then only $125 per year (You can save a multiple of the subscription fee the first time StopAlerts helps you make a timely exit from a deteriorating position).

A good sell discipline is as important to investment success as a good buy discipline. As every farmer knows, good planting doesn't pay until there is a good harvest. Don't let wishful thinking and emotions prevent or ruin your investment harvest. StopAlerts embodies your discipline and keeps you honest with yourself about the condition and performance of your investments.

StopAlerts works every day, whether you are at work or play.

Try it. You will be glad you did.