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.
- Jan 29, 2014 at 7:48PM