 Wysłany: Sob 5:44, 07 Gru 2013 Temat postu: a trader trading the E-mini S& |
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| Profit Targets
Every trader should have a risk management plan in place before they start trading. Setting a profit target is a simple risk management tool that every trader should incorporate. Everytrader should have a risk management plan in place before they starttrading. A stop loss is a simple risk management tool that everytrader should know and be able to use. There are several ways toimplement stop losses into your daily trading. Depending on yourgoals and trading plan, not all stop loss methods might be the rightone. Here we look at several stop loss methods so you can figure outwhich one is right for you. Astop loss is a handy risk management tool that many traders use intheir day to day trading. A stop loss helps to limit risk because ithelps the trader see a limit that they have set for themselves. Itis generally a number that a trader sets that tells them when theyshould exit a market. There are a few different ways to set thisnumber.Theeasiest way to use a stop loss is to use a fixed dollar amount. Forexample, a trader trading the E-mini S&P 500 might set a loss of$200 for his trading strategy. If one point on the S&P 500 wasequal to $50, then this trader would know to exit the market afterfour losses. Four losses would mean a $200 loss on the overallaccount,[url=http://www.christianslouboutinsales.com]Christian Louboutin Outlet Online[/url], and when the stop loss was reached the trader would know tostop trading and evaluate.Anotherway to set a stop loss is to set a percentage of price as your loss. This is very popular with stock traders. Here is how it works: Astock trader might set a 10% stop loss on a given stock. Let’s saythis particular trader buys a stock at $100. Because they are usinga 10% stop loss, their stop is set at $90. Now they will look toparticipate in a move. If they are wrong, they know that they aregoing to get out with a 10% loss.Othertraders prefer to set technical stops. This kind of stop can bebased on support or resistance patterns in the market. Imagine youare looking for a market to move up and you see there is a supportlevel. Using a technical stop would mean that you would place yourstop just below that support level. This kind of stop would allowyou to participate in the trade and move to the upside. On the otherhand, if you were expecting the market to drop, you would place yourstop just above the resistance level. Thefinal method of setting stop losses was invented by MarkusHeitkoetter, CEO of Rockwell Trading. In this method, traders placestops based on percentage of volatility. This method is very popularwith traders who look at the average daily range of a market. Atrader using this kind of stop will look at the average daily range,take the seven day average between the high and low, the session highband low, and use these numbers to determine the stop loss. Stoplosses are one of the best risk management tools a trader canincorporate into their trading. Not all stop loss methods might beright for every trader, but every trader should find a stop lossmethod that works for them. If you would like to learn more aboutstop losses and trading,[url=http://www.christianslouboutinsales.com]Christian Louboutin Sale[/url], please go to www.RockwellTrading.com.MarkusHeitkoetter is the author of the internation bestseller "TheComplete Guide To Daytrading(www.rockwelltrading.com)and a professional daytrading coach.For more free information on day trading visit his websitewww.rockwelltrading.com. |
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