How Limit Orders Can Work For You

If you’ve read our Short and Sweet Tips Column (HERE) you know we’re a fan of how limit orders work.

Example:  You like a stock currently trading at 78 but you don’t want to pay that much for it.

So, you pick a price UNDER the market and you wait.

Sometimes you get filled and sometimes you don’t.

The point being you’re not chasing a stock up.  And you get to buy it at a price YOU are comfortable with.

Case in point.

We like copper mining stocks and in particular Southern Copper Corp. (SCCO).

How Limit Orders Work

And on April 14th, (SCCO) was trading at 81.5.

We put an order in at 15% UNDER the market, Good until Cancelled.

Low and behold we got filled on May 22nd at $69.25.

And at $69.25 it’s paying a healthy 5.77% dividend.

(It is currently $71.20)

So, you might be wondering “What happens if it keeps on going down?”

Good point.

And there is no assurance it will go back up.

But the point is we bought it at a price WE ARE COMFORTABLE WITH.

And we were able to do it as a result of the overall markets getting whacked.

Remember…copper, along with most other commodities, is in the early stages of a major Bull Market.

And as supply chain issues gets worse, the demand will increase and eventually causing most commodities* to rise.

(*Note: Copper is a key to industrial activity)

Another point to consider is how important it is to have cash on hand to take advantage of opportunities created by man-made fear in the markets.

But in order to have cash on hand you need to take profits when the opportunity presents itself.

Why?

Because one of the biggest mistakes most investors make is watching all their profits disappear in a bad market and wishing they’d sold before the decline.

But the good news is every month we publish Short and Sweet Tips (along with valuable insights into how Wall Street operates “Behind the Curtain”) in our “…In Plain English” newsletter (HERE).

And for the cost of a couple of lattes, you can have it sent directly to your email every month.

Think of this…

If you only get one tip that makes or saves you tons of money, isn’t that worth a couple of lattes?

Learn how to prosper AND thrive in Turbulent Times (HERE).

And share this with a friend…even if they don’t drink lattes.

They’ll thank YOU later.

We’re Not Just About Finance.

But we use finance to give you hope.

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