Top Tips for Using Stop-Loss Orders

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One of the first rules in trading — especially with volatile stocks — is to manage your risk and keep your losses small. In this video, Tim Bohen talks about a technique that can help you from getting stopped out on trades that ultimately end up working. This is important — tune in!


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Stop loss orders — how do you use them and what tricks can help you maximize them?

With volatile stocks, you don’t want to overstay. But these stocks can be choppy. That means you get stopped out ... only to see the stock reverse and the trade work out as you thought. So frustrating!

How can you avoid this mess? You have to set smarter stop levels.

First, you want to avoid all obvious stop-out points, basically when a stock goes red … That’s especially true on low-volume plays.

When you calculate entry and exit points, you need to keep these obvious stops in mind. Also, you want to properly size your position … Don’t size in too much.

Bohen has a great example in this video. Tune into to see how he breaks it down with Workhorse Group Inc. (NASDAQ: WKHS).

You must pay attention to volume when you set your stop losses. So avoid low-volume premarket levels. And try to avoid whole-dollar/half-dollar prices — a lot of traders set their stops there.

When you’re dealing with highly volatile stocks, you have put more thought into your trading plan. If you just pick a stop, you risk getting booted out of the trade and missing it altogether.

You want to build your account, get over the PDT, and work toward your goals, right?

If you constantly get stopped out, you can get frustrated. And that can drain your energy and confidence. Or it might cause you to overtrade or revenge trade. Avoid that at all costs!

The snowball effect can be detrimental to your account and your mentality. So plan ahead. Prepare. Use these tips to help you stay focused and maximize your consistency.

     
#StockMarket #StopLoss #DayTrading
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*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.

You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.
4 سال پیش در تاریخ 1399/06/28 منتشر شده است.
10,795 بـار بازدید شده
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