Tag: stop lossSort
Using Stop Loss Orders to Protect Yourself While Letting the Move Run Its Course (NASDAQ:EZPW)
Most traders and investors are familiar with stop loss orders but few actually use them in their trading. The reason is that stop losses are often viewed as a tough balancing act between keeping a tight stop to minimize losses and "smothering" the stock by having the stop so close as to be stopped out by any minor decline.
huge primary offers may suck liquidity from the secondary market
As much as you should be aware of target prices where you decide to lighten up/sell your stock trading positions when you are ahead, you should be aware of price levels where you "throw in the towel". This price level is what we call a stop-loss. As traders, we have limited capital and allowing it to deteriorate is a big no-no.
Regardless of how strong a trading system you have, if you do not apply good money management controls, you will find yourself in trouble.Dustin Pass, one of the foremost experts on Forex trading says, “An individual trading with proper money management skills will do better in a mediocre trading system than a person trading an excellent system who lacks money management skills.” In his ebook,