here are 2 quick ways to set your stop loss order
TRANSCRIPT
Trade entry is not the most important part of trading
Risk Manager
Job #1
Tight stops = Larger size
Textbook Stop
Most traders areunder capitalized
The example was a perfect continuation play
These locations are targets for big players
Cluster of stops will be ripe for the pickings
Probes Below
Traders positioned long are taken out and their stops (sell stops)
get triggered
Astute traders buy these flushes below support gaining a
positions at a favorable price
Traders holding longs get the benefit of stopped
out traders buying back in which propels their
trade into profits
This is how price evolves
Objective stop loss placement &
respecting current rhythm (volatility) of
the market
This will force you to use smaller position
sizes
Question: If you are flushed out of a trade and the setup is still
valid, will you reenter?
Have you added up the cost of the trade and the loss (plus the potential second loss)
Measurements Of Market Swings
The second rally is part of the complex
pullback but we wouldn't know that at the hard right edge
Is this even a short trade you would take?
It is quite objective and does respect the moves of the current
market conditions
It can provide large stops which may turn
off many traders
ATR VolatilityStop Loss
It's more objective than the previous
method
ATR stop loss is calculated from closing price of entry candle
Will you use the closing price, high or
low price?
Be Consistent
You've probably heard the following:
"This is a low risk trading setup"
What does that mean?There is simply risk.
Are you jumping around in risk % to allow for different
position sizes?
I personally would not use a different risk
percentage unless it was part of the trade plan for
a particular setup.
Failure test
It is certainly not a low risk trade though.
You may miss some trades
Both of these tactics respect market
conditions
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BLUEPRINT
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