As growth investors/traders, more often than not we buy stocks as they break through a pivot, move through resistance or are otherwise increasing in price. Put another way, we buy on the way up.
To be notified when a target price is reached, you can set an alert with your broker or in your preferred trading platform. Once the price is met, if you’re online or have access to your broker via your mobile device, you’re good to go. If that’s not the case, a buy stop order may be a good option.
The primary reason for this post is clear up any confusion, and here’s why, with my broker, there isn’t option to place a buy stop per se. Rather, when I buy a stock, I have the option to choose one of the following order types: market order, limit order, stop loss or stop limit.
This post covers the two latter options and how they differ.
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