MarketClub Stock Trading WhiteBoard Videos
"One of the things I have always enjoyed, is sharing what I know with others. I have to thank my parents for teaching me the joy of sharing." Adam Hewison - Traders WhiteBoard Series.
Participating in the Traders Whiteboard experience will teach you everything you need to know to become a successful trader. In
every Traders Whiteboard video I explain in detail how to use many of
the same trading tools that are in use today by some of the worlds top
hedge fund traders. You are probably wondering much all of this is going to cost? The truth is, the service is free, and there are no catches.
In this Traders Whiteboard lesson 2. Trading STOPS
There are three ways to use stops to protect your capital and lock in profits from a trade. These three money management techniques can be used in stock, futures and forex trading. The important rule is that you do use a real stop in the marketplace. A friend of mine once joked with me that he had never seen a "mental stop" filled in the pits. It's true, for stops to be effective they must be in the market in the form of an order.
If the market is good your stop will not be hit. If the market is bad or changing direction then you'll want to be stopped out of it anyway. That is why stops are so crucial to trading success.
Here are the three most commonly used types of stops. Which one do you use?
(1) Dollar stop.
(2) Percentage stop.
(3) Chart stop.