High Probability Day Trading Strategies and Systems (mobi) by Manny Backus

Author:Manny Backus [Backus, Manny]
Language: eng
Format: epub
Published: 2013-10-12T16:00:00+00:00

b. Percentage Based Stop. I touched on percentage based stops earlier, but let’s look at it a bit more closely. Many brokers will allow you to set up your trading platform is such a way that every trade you enter has an automatic percentage based stop attached to the order. So, for example, let’s say you are using a 1% automated stop loss system. If you set up your order system in this way, then the most you can lose on any one trade is 1% of the price of the stock. Using this method on our previous trade of IBM, your buy order at $183.30 would generate an automatic 1% stop of $181.47. Since this would require IBM to get to a new low of the day, then hopefully you would have manually exited the order before that point. But the benefit of the automatic stop is that you set a stop without having to think about it too much. You can still go into the trading platform and exit the trade before that point, but the automated system gives you a stop in case you forget to do it yourself.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.