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Hi Darrell an all,
I am finding that a simple way is to first identify a stop price before
the buy and sell price. Using this method you can wait for the market to
show you where possible support or resistance maybe by reversing from
that price. This would be the price you can use for your stop. Then wait
for the price to return within your risk tolerance ie. $1, $2,$3 or what
ever it may be. Example market declines to 950 and bounces $3 to 953.
You like the set up and decide to buy. Wait for the pull back from 953
to within your limit amount, using 950 as the stop price. Therefore you
can buy 951 or less if is is $1.00 or 952 if it is $2 and so on. This
way your focus is the stop price, the entry objective then becomes to
get as close to the stop price as possible.
Darrell Zang wrote:
>
> Everbody....
>
> I've got a question that seems to have no easy answer....Maybe somebody
> on the list can help.
>
> >From all I read, it's said that scrupulous money management is
> absolutley necessary to be a successful trader. Things like, never
> trade with out protection stops, etc. It is also said that you
> shouldn't risk more than 5% of your portfolio to make any trade.
>
> HOWEVER, when I try to follow this advice and place my stops within 5%,
> some jerk on the floor goes after my trade and stops me out!!
> I've done a trade at 2:00 and been stopped out at 2:01. That hurts!!
>
> I've tried on close stops, but that doesn't offer much protection if
> your moved against strongly.
>
> My, question.....How does one keep in the market and still practice
> money management?
> How to keep from being stopped out???
>
> Darrell Zang
>
> Darrell Zang
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