Stop Loss Ideas

This article elaborates on the one dated August 7, 2006 entitled “The Ideal Trading System”.

Today’s article is about the “stop loss” feature. That concerns cutting losses.

Many traders will exit a trade based on a price. When a certain price is hit, they will exit at a loss to protect their capital from further loss.

There are other ways to define a loss. You can custom design it. For example, notwithstanding or maybe in combination with price, some reasons to exit a trade with a loss include:

-economic reports
-revisions to economic reports
-earnings reports of specific companies
-revised earnings reports of specific companies
-indicators such as Moving Average, MacD, Stochastics, RSI, etc.
-price chart patterns
-many others

Price does not need to be the sole criteria for exiting a trade at either a loss or at a profit.

We'll chat again soon ...

Copyright 2006 Raymond T. Lee. All rights reserved.
Leisurely e-Mini Futures Trading
eMail me Comments