Buy Stops Above

As the name implies, a "buy stops above" is a plan to to buy a specific security when its price exceeds a certain “level of resistance” by placing a buy stop order at that price.

The trick is to predict what that level of resistance or price should be, so you know when to place a buy order.

For example, a trader thinks that if the price of Stop At Anything Inc. stock breaks above of $15, it will continue to go higher. She the places a buy stop order at $15.01. This will become a market buy order once it goes above the $15 level, giving the trader the opportunity to get in on the action as the security hopefully continues to go upward. Let the praying begin.