How to Stop Loss on Webull

Stop-Loss orders are a great way for traders to automate their trades and protect their assets from big losses. This is why it is important to know how to stop loss on Webull and how to set orders in a way that doesn’t take too much of your time and, most importantly, saves you from losing money.

Stop-Loss orders on Webull can be set when placing an order to sell through the order entry widget, by clicking and adjusting the stop-loss option to a price you wish.  This can be done through a browser or through the mobile app.

A person's hands on the table with money and sign stock market

The Webull app and platform allows you to place stop-loss orders in several different ways, and which one you will use depends on your personal preferences. Here is how to set up a stop-loss on Webull.

What is a Stop-Loss order on Webull?

If you have switched from Robinhood to Webull or from some other platform, you probably want to know how to place a stop-loss order on Webull. For experienced investors that do day trading, stop loss orders and limit orders are great ways to save them from any losses. In essence, a stop order is an automated order you place when selling stock at the lowest price you are willing to sell that particular stock.

To make money on Webull and, most importantly, to save their investments from any huge potential orders, when placing a trade order on a stock, most traders put the minimal amount of money they wish to sell that stock for. So if you have a stock with a current value of $6, you can place a stop loss order at $5, meaning if the price of that stock reaches this number, your order will automatically pull out, and your stock will be sold at that price.

When it comes to penny stocks, placing stop orders can be risky since these stocks can vary in price during the day.

Stock exchange app

How to Set a Stop Loss Order on Webull?

Once your Webull account is approved and you have submitted your Webull ID number, you will be able to start trading stocks after you have deposited money into your account. Depending on the type of account you have you will be able to make different amounts of day trades. For example, if you have a cash account, you will have an unlimited amount of trades during the day, while on the margin account, you will have three trades per day. All that is important to know because it will determine different tactics you can use when trading stocks on Webull.

For example, you can set an order where you will buy stock for a certain amount and sell it once it reaches the price limit you set or drop the order if the price falls below your stop order. Here is how to set a stop order on the share or stock you already have and plan to sell.

Step 1 – Place the order entry widgetGo to the top right corner and click on the tool option. Click on the add widget button. Choose a classic trade widget.
Step 2 – Go to the trade widgetGo on the option sell on the widget and enter the number of shares you wish to sell.
Step 3 – Set a stop orderClick on the icon order type and the drop menu will appear. Choose the option “Stop”
Step 4 – Set up the priceOn the window stop price, enter the amount of money where the order will stop. This is the minimum value you wish to sell this stock.
Step 5 – SellClick on the sell stock option.

What Is the Take Profit and Stop Loss Order?

In the example above we explained how to set a stop loss order when selling a stock, but you can place this order when buying and selling stock and place an order when you wish to make a profit.

There is an option on Webull called take profit and this is a price you are willing to sell your stock to earn money. So for example, if your stock value is $6, you can set up the take profit to be at $6.5, and stop loss order to be at $5.5. This way, you don’t have to check Webull charts and live data all the time – you can set up these orders in advance and let the platform do all the work for you. Here is a step-by-step guide on how to set up stop loss and take profit orders on Webull:

  • Step 1 – Go on the trade widget and click on stop loss and take profit squares
  • Step 2 – A new window will appear where you can enter the numbers for stop loss and take profit.
  • Step 3 – Click submit sell, and a new window will pop out with your order. You can edit your order in this window.
  • Step 4 – Click on the button to place the order.

Is Stop Loss a Good Tactic?

When trading with stocks, there is no guarantee that you will be completely saved from any potential losses, but stop-loss orders can save you in a way. And many traders use stop-loss orders in everyday trading. With stop orders, take profits, or limited orders, the whole process of trading with stocks is less complicated and stressful. If you use these automatic features Webull offers, it will take a lot less of your time and energy trading with stocks. All you need to do is to make a good call and place your order at the number you feel will bring you the most profit and minimal losses.