- April 2014
- Posted By Ninoslav
- 0 Comments
Before beginning, it would be wise to make a mention of the market. Why so? Only by analyzing by market and churning out a strategy based on that analysis can you hope to succeed here. Also, would you like to feel anguished if a wrongly put stop prevented you from making a fortune? Even these Stop Loss Trading Tips for Long Positions are based on market analysis.
So, after you have put together a strategy to trade and are ready to jump into the playground, it would now be nice to have some tips.
And so, firstly, it will be worthy to know of some regarding your long positions, where main focus of your trade would be to buy. Always remember that after entering into a long position, you benefit in situations when prices rise. Similarly, you encounter losses when there is a dip in the prices.
What about those tips?
To start with, it would be advisable to put your stop limits for the current day just a notch below the previous day’s lowest point. Except, if that yesterday was a booming day, and after starting with that low, move that limit closer to current day’s opening position.
Also advisable would be using ATR (aka Average True Range) for setting your stop beyond the expected range amount as per ATR. Has your strategy accounted for a recent minor support level? If yes, it would be advisable to set up the stop limit just under that level. Also remember, that for longs, one needs to think about moving stops up only.
These were just a few Stop Loss Trading Tips for Long Positions that people generally use. Hopefully, you will too. Now, wouldn’t knowing “What Stop Loss Trading Tips for Short Positions are helpful for a trade” serve your purpose further?