In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a reader who asks: "When you make a recommendation on one of your share services, why don't you include a stop loss recommendation?" Jason explains that a stop loss order is an order given to your broker to sell a given stock at a given price and that the ultimate point of a stop-loss is to limit one's losses. However, with today's high volumes of trading and free flow of information, volatility comes more into play now than perhaps ever before. Because The Motley Fool's recommendations are based on longer timelines and fundamentals of the businesses, we tend to not worry about short-term volatility, because we believe that over the long run our investments will do well. It doesn't mean it's right or wrong -- that's just one way to look at it.
You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Ask a Fool: Why Don't You Include a Stop Loss With Your Services' Recommendations?
Here's why the Foolish investing philosophy doesn't make use of stop loss orders.
About the Author
Jason Moser is a Senior Investment Analyst and Lead Advisor at The Motley Fool and has been with the company since 2010. He holds a B.A. in Economics from Wofford College.
We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Related Articles





Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.