Final answer:
To ensure that you get executed out of a stock if it drops below your comfort zone, you should use a stop-loss order. This type of order automatically sells your stock if it reaches a predetermined price, protecting your investment.
Step-by-step explanation:
To ensure that you get executed out of a stock if it drops below your comfort zone, you should use a stop-loss order.
A stop-loss order is a type of order that automatically sells your stock if it reaches a predetermined price, known as your stop price. This helps to limit your losses and protect your investment.
For example, let's say you buy a stock at $50 per share and you set your stop price at $45 per share.
If the stock price drops to $45 or below, your stop-loss order will be triggered and the stock will be sold automatically.
By using a stop-loss order, you can have peace of mind knowing that you will be executed out of the stock if it drops below your comfort zone, helping you to manage your risk and protect your investment.