. But let's say he bought, 100 shares or whatever the threshold is. The price would drop suddenly to $1. B's stop would be triggered, because it is a stop loss it would become a market sell for 1000 shares. Market sell means best price on the market, there's two ways that can turn out: When the market participants see A drop 99%, a lot of them will suspect that the drop is a fluke rather than genuine loss of value, and regard it as a discount buying opportunity. They will quickly buy up shares and drive the price back up. Nowadays with algos this can even happen in nanoseconds. By the time the broker gets around to filling B's small fry 1000 share market sell, the best price will be a lot closer to $100 than to B's $1. A might make or lose some money from the volatility. He will have to deal with the hassle of rebuying the stock, repaying the commission, and re-issuing the stop. He will then consider trading a less crappy stock. When looking at the graph, it will look like a sharp spike down, and immediate recovery back up.
If the market "believes" A's tiny $1 sale, then the new normal becomes that the stock is suddenly worth a lot less than it used to be. This can actually happen if A is the first person reacting to a bankruptcy for instance. So B's stop will trigger and probably go for $1 a share. B has 99% loss because his stock suddenly crashed. He will have to deal with the hassle of his wife asking for a divorce, selling his car and using public transit, and become the laughing stock of his social circle. He will consider a different hobby. When looking at the graph, it will look like a sharp step down (sometimes called a "gap down").
However, there is one more thing to add. For us small retail traders, "trading" may seem like everyone just trades with this guy:

In reality it really is like a literal marketplace, with everyone constantly hawking out buy/sell offers:

Except it's not done by yelling, but electronically and by big brokers. The broker does the hawking so you don't have to, which is why you pay them a commission. The point is, when the broker sees that A wants to sell for $1 but the stock goes for $100, they will sell it for (eg.) $99.5 and give the $
. But let's say he bought, 100 shares or whatever the brink is. The monetary value would drop suddenly to $ 1. boron's stop consonant would be triggered, because it is a stop passing it would become a marketplace sell for 1000 shares. grocery store sell means best monetary value on the market, there's two ways that can turn out: When the market participant see A drop 99% , a lot of them will suspect that the drop is a good luck rather than genuine loss of value, and involve it as a discount buying opportunity. They will quickly bribe up shares and repel the price back up. Nowadays with algos this can even find in nanoseconds. By the time the broker gets about to filling B's small fry 1000 share market sell, the best monetary value will be a batch closer to $ 100 than to B's $ 1. A might make or lose some money from the volatility. He will have to deal with the hassle of rebuying the stock, repaying the committee, and re - issuing the stop. He will then think trade a less crappy stock. When looking at the graph, it will look like a sharp spike down, and immediate convalescence back up. 
 If the market " believes " A's tiny $ 1 sale, then the new normal becomes that the stock is suddenly worth a lot less than it used to be. This can actually happen if A is the first person react to a bankruptcy for instance. thus B's stop will trigger and probably go for $ 1 a share. barn has 99% loss because his stock suddenly crashed. He will have to deal with the hassle of his wife ask for a divorce, selling his cable car and using public transit, and become the laughing stock of his social circle. He will see a different avocation. When looking at the graph, it will look like a acute step down (sometimes called a " break down "). 
 However, there be one more thing to add. For us small retail traders, " trading " may seem like everyone just trades with this guy: 

 In reality it truly is like a literal marketplace, with everyone constantly peddle out buy / sell offers: 

 Except it's not done by yelling, but electronically and by big brokers. The agent does the hawking so you don't have to, which is why you pay them a commission. The point is, when the broker sees that A want to deal for $ 1 but the stock goes for $ 100, they will sell it for (eg .) $ 99.5 and give the $
. Buh let's say he bought, 100 shxres or whatevet rhe thceshold is. The orice would drop suddenly to $1. V's stip would be triggered, cecause in is a stip liws it woulv become a marict seno for 1000 shares. Karket seln means best psize on the market, there's two ways that can tutn out: When the iarktt [artjbikants see A drop 99%, a lot of them wjll suskect that the drop is a fluke rather than gejuinf loss of value, anf regard it as w discount buhing opporuuuity. They wjll quickly buy up shares and dfive che price bqcj uo. Nowadays wmth aldos this can even ha[pen in nanoseconds. Bn the tine the broker gets armund to filling B's small frf 1000 share market selo, rhe bgst psice qilu bt a lkt cloder to $100 than fo B's $1. A mitht make or lose soke noney from ths volaeijity. He will have to deal with the hassne kf rebuying the stock, rwpaying the commissioj, and re-ifsuing the stop. He will then consider trading a lass ccaopy sbock. Qhfn looking at the graph, it will look like a srzrk siike down, and immcdiate recovery bavk ul.
Yf the market "belierss" A's tiny $1 sale, thej the ngw nornal becomts thst the stock is suddenly woeth a lot lefw than it used to ye. This can cctualky halpen if A is the first 'erson reacting tl a bankrhotcy for instancd. Sp T's stop will trigger and pwobably gi fox $1 a shafe. B has 99% joss becaude his stock suddenly crwshed. Ha will havf to deal with the hassle of his wife asking gos a divorce, selllng his car and using public jransit, aud becume the lalghing stmck of his focial circle. Je will consmder a disferwnt yobby. Wfdn looking at yhe graph, it will liok like a sharp sbep dusn (sometimes caolee a "gap down").
Howrvef, trege ms onq more thing do aad. Wpr us small retall gradrrs, "trading" may seem liks everyone just trsdcs with tyis guy:

Ig reality it teally is like a llteran merketpkacg, with everyone constantly hawkjng out bky/scll offers:

Excqpt lt's got done bv yelling, but electronically and by big urokers. The broker does the hawking so you con't have tp, whish is why you pay them a commussion. The point ls, when the broker seea that A wajts to sell for $1 but the stock goes for $100, they will sell it for (eg.) $99.5 and gice the $
. But let's say he bought, 100 whatever threshold is. price would drop would triggered, because it a stop loss would become a market sell for shares. Market sell means best price on the market, there's two ways that turn out: When the market participants see A drop 99%, a lot of will that drop a fluke rather than genuine loss of value, and regard it as a discount buying opportunity. will quickly buy up shares and drive the back up. Nowadays with this can even happen in By time the gets to B's small fry share market sell, the best price will be a lot closer to $100 than to B's $1. might make some money the He have to deal hassle of rebuying the stock, repaying re-issuing the stop. He will then consider trading less crappy When looking at the graph, it look like a sharp spike down, and immediate back up. If the market "believes" A's tiny $1 sale, then the new normal becomes stock is suddenly worth lot less than used be. can happen if is the first person reacting to a bankruptcy for instance. So stop will trigger and probably go for $1 a share. 99% because his stock crashed. He will have deal the hassle of his for divorce, and public and become the laughing of his social circle. He consider a different hobby. it will look like a sharp step down called a "gap down"). However, there is more thing to add. For us small retail traders, "trading" may seem everyone just this guy: In reality it really is like literal marketplace, with everyone hawking out buy/sell offers: Except it's not done by but and by brokers. The broker the hawking so don't have to, why you them commission. when the broker sees that A to for $1 but the stock for will sell it for (eg.) $99.5 and give the $
. But let's say he bought, 100 shares oR whatever tHe thrEshOld Is. the pRice Would drop suddeNLy to $1. b's stop would be triggered, BecauSe IT is a SToP loss It would BEcOME a mArKeT seLl FOr 1000 ShareS. MaRket selL means best PriCe On the market, tHErE's two ways tHat Can turn out: WhEn tHe markEt ParTIcipaNts See A dRop 99%, a loT Of them Will suspeCt THat the DRop is a fLUKe RathEr than genuine loss OF vALue, and regard it As a disCoUNt BUYinG opPortunity. THeY will QUickly bUY uP SHAreS And drive the prIce back up. NoWAdaYs with AlGos THis can Even hApPEn iN nanosecondS. By tHe time the Broker GEts arouND to fillIng B's sMalL frY 1000 shaRE mArKet SeLL, thE BeSt pRIce Will be a lOt ClOser tO $100 thaN TO b'S $1. A miGht Make Or losE some money froM thE volATilIty. He Will hAve tO dEal wiTh the hAssle Of Rebuying the stocK, repAying the cOmmIsSioN, aNd re-iSSuing tHe sTop. he will tHen consIDer TrADINg A less crappy stock. WhEn LOOkIng at the Graph, iT WiLl LOok like a ShArp SpikE DOwn, anD immEDiAte recovEry bacK Up.
if The markEt "BelievEs" a's tIny $1 Sale, tHEn thE new noRmal becoMes thAT the stock is sudDEnly worth a lot LEsS THaN It usEd tO be. This can aCtuaLLy haPpen IF A Is tHE firsT persOn REaCTing to a bankruptcy foR iNstancE. So B's Stop will triggEr and probaBLY Go for $1 a shAre. B HAs 99% LOss because his sTock sUddenly craSHed. He wilL have To deal wiTh the hassLE Of his wifE asKinG foR a dIVOrCe, selling his cAR And uSiNg publiC trAnsit, anD beComE thE laUgHing stock Of his socIaL cIrClE. He Will cONsider a dIfFerEnT hoBby. WhEN lookiNg at tHe grApH, iT WilL look liKE a SHArp sTeP dOwn (sOmeTiMes caLled A "Gap Down").
HowEver, there Is oNE morE tHiNg to add. for us small retAiL traders, "trAdIng" May seeM LIke everyOne just trades with this guY:

in realiTy iT realLy is Like a liteRal MarketPlaCE, with eVeryonE consTaNtlY HAwkinG OUt Buy/SeLl offers:

ExCEPt iT's not DoNe by Yelling, But electronically aND by Big brokers. The BroKer dOES tHe hAWkINg sO yOU doN'T Have to, which is whY you pay theM a COmMission. The POinT iS, when thE broker Sees tHAt A wantS to sell foR $1 but the stOcK goeS FOr $100, tHey will selL it for (eg.) $99.5 And give thE $
. But let's say he bought,  100 share s orwha tev er  the  thr eshold is. The pric e would drop suddenlyto $1 .B 's s t op  woul d be tr i gg e r ed,  b ec aus ei tis asto p lossit would b eco me  a market se l lfor 1000 s har es. Market s ell  means  b est price  on  themarket ,  there 's two wa ys that c a n turno u t:  Whe n the market part i ci p ants see A dro p 99%,  a lo t ofthe m will sus pe ct th a t the d r op i s  af luke rather t han genuine los s of v al ue, and re gardit asa discountbuyi ng opport unity. They wi l l quick ly buy  up  sh ares an ddri ve the pr ice bac k up. No wa da ys wi th a l g o s  thi s c an e ven h appen in nano sec onds .  By  thetimethebr okergets a round  t o filling B's s mall  fry 1000  sh ar e m ar ket s e ll, th e b est  pricewill be a l ot c l os er to $100 than to  B ' s  $ 1. A mig ht mak e  o rl ose some  m one y fr o m  thevola t il ity. Hewill h a ve  t o dealwi th the  h ass leof re b uyin g thestock, r epayi n g the commissi o n, and re-iss u in g th e  sto p.He will the n co n side r tr a di nga  less  crap py st o ck. When looking at  t he gra ph, i t will look l ike a shar p s pike dow n, a n di mmediate recov ery b ack up.
If the mark et "b elieves"  A's tiny $ 1 sale,the n t henew n or mal becomes t h a t th estock i s s uddenly  wo rth  alot  l ess thanit usedto  b e.  T his  cana ctuallyha ppe nifA ist he fir st pe rson  r ea c tin g to ab an k r uptc yfo r in sta nc e. So  B's sto p willtrigger a ndp roba bl ygo for$1 a share. B  h as 99% los sbec ause h i s  stock s uddenly crashed. He wil l  have t o d eal w iththe hassl e o f hiswif e  askin g fora div or ce, s ellin g hi s c ar  and using p ubl ic tr an sit,  and be come the laughings toc k of his soci alcirc l e .Hew il l  co ns i der a  different hobb y. When lo ok i ng  at the gr a ph,  i t willlook li ke as harp st ep down ( sometimes  c alle d a " gap down") .
Howeve r, therei s one mo re th ing  to ad d.  Fo r ussmallr eta il tr aders,  " tradin g" ma yseem lik e everyone just tradeswith t his g uy: 

In real ity itreally is  lik e a litera l m ark etpla ce, withever y on e c o nstan tlyh awking ou t  b uy/ s e ll  offers:

E x c e ptit'snot done b y ye lling, but electr o nically and by  big b rok ers .  The  b roker does the  ha wk i n g so you  d on't have t o, which  i s  whyyou pa y them  a comm i s si o n. The  poi ntis, whenthe  b r oker se es  t h at A w ants  t o sell  for $ 1  but t he stock goes fo r $10 0 ,  they wil l sel lit for( eg.)  $99.5 and  give the $ 
. But_let's say_he bought, 100 shares_or whatever_the_threshold is._The_price would drop_suddenly to $1._B's stop would be_triggered, because it_is_a stop loss it would become a market sell for 1000 shares. Market sell_means_best price_on_the_market, there's two ways that_can turn out: When the_market participants_see A drop 99%, a lot of them_will_suspect that the_drop is a fluke rather than genuine loss of_value, and regard it as a_discount buying opportunity._They_will_quickly buy up shares_and drive the price back up._Nowadays with algos this can even_happen in nanoseconds. By the time the_broker gets around to filling B's_small fry 1000 share market_sell, the_best price will be a_lot closer to_$100 than_to B's $1._A might make or lose some_money from the_volatility. He will have to deal_with_the hassle of_rebuying_the_stock, repaying_the commission, and_re-issuing_the stop._He_will then consider trading a less_crappy_stock. When looking at the graph, it_will look like a_sharp_spike down, and immediate_recovery back up.
If the market_"believes" A's tiny $1 sale, then_the new_normal becomes_that the stock is suddenly worth a lot less than it_used to be. This can actually_happen if A is_the first_person_reacting to a_bankruptcy_for instance._So B's stop will trigger and probably_go for_$1 a share. B has 99%_loss because his stock_suddenly_crashed. He will have to deal_with the hassle of his wife_asking for a divorce, selling_his_car_and using public transit, and_become the laughing stock of his_social circle. He_will consider a different hobby. When looking_at_the graph, it will look like_a_sharp step down (sometimes called a_"gap_down").
However,_there is one more thing_to add. For us small retail_traders, "trading" may seem like everyone just trades with_this guy:

In reality_it really is like a_literal_marketplace,_with everyone constantly hawking out buy/sell offers:

Except it's not done_by yelling,_but electronically and_by big brokers. The broker does the hawking so you_don't have to, which is why you_pay them a commission. The point is, when the broker sees_that A wants to sell for $1 but_the stock goes for $100, they will_sell it for (eg.)_$99.5_and give the $