What are stock quotes, price-targets and stop-loss targets?

It is important to understand the terms which are used in the stock market if you plan on to stay in the market and make a profit. Today we will be discussing three of the most important terms which you should know about and those are

  • Stock quotes
  • Price-targets
  • Stop-loss targets

we will see what they mean and how you can use them to your advantage. So without wasting much of your precious time let’s just dive straight into it.

STOCK QUOTES

Stock quotes are basically a price of any stock which is stated or quoted on an exchange. This quote provides you with all the necessary information which you need to have regarding that particular stock. it contains valuable information such as its bid price and ask price, the last-traded price and volume of the stocks traded. Investors and traders always access this information and check the stock quotes online or by using their smart mobile devices instead of using the printed media such as newspapers and magazines. A number of websites on the internet provide you with the delayed stock quotes at no charge, while on the other hand, the real time stock quotes are available only to the paid subscribers of that app or website.

Stock quotes contain a lot of valuable information which can be used to draw out numerous conclusions from them. The main key here is that not to allow extensive numbers discourage you when a quote shows up information. With the help of quotes, you can easily compare the companies in the market which are alike. These quotes will often provide you with information such as whether or not that company is worth investing.

PRICE TARGETS

Price targets are nothing but the expected price level of security done by the investment analyst or advisor. It represents the price of a security that if achieved results in the trader recognizing the best investment for his investment. This is the point where trader or investor wants to exits his position and so he can claim his reward.

To put it in simple term it is an analyst’s expectation for the future price of a security and once the security reaches this the investor or trader will sell the security and make the profit.

Essentially it’s a prediction by an analyst there may be many price targets for a single security. Different analysts and all the other financial institutions use different types of methods and consider different economic forces when deciding the price target.

Price target often affects the current price of the stock itself. Price targets provide insight to visitors but they also provide you with the information regarding when to buy and sell. also if price targets are widely followed they provide you with the information regarding when will be the most buying or selling of a stock can happen which will help you to create more lucrative strategies.

STOP AND LOSS TARGETS OR ORDERS

basically, it is an order which is placed to your broker to sell the stocks when it reaches the certain price. It is designed to limit the loss of investor on a position in the security. Although it may happen that most of the investors associate a stop and loss order with a long position, it can also be used with a short position In such cases the security would be bought if it trades above the defining price. This helps you take out the emotion out of the trading and it can become very handy when someone is on vacation or cannot watch his position. But keep in mind that the execution is not guaranteed, mainly where trading in stocks is halted or gaps down or gaps up the price. These are also known as “stop order” or “stop market order”.

All of these terms are pretty valuable if you want to invest in share market and you need to consider each and every factor before investing into any stocks.