The 7% Sell Rule Explained: O'Neil's Stop-Loss
The 7% sell rule says sell any stock that falls 7 to 8% below your buy price. The recovery math behind the cap and why a stop order can fill well below 7%.
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The 7% sell rule says sell any stock that falls 7 to 8% below your buy price. The recovery math behind the cap and why a stop order can fill well below 7%.
A stop order becomes a market order and fills at any price. A stop-limit becomes a limit order and can miss the exit entirely. Five years of gap data show it.