To be profitable, we have to get our stop placements correct:

  • Below or above a sure low or high if we’re in a trend.
  • An intermediate low or high might be okay in a breakout from a trading range (TR), but the amount traded ought to represent the distance to a definite stop position.
  • In a TR, or suspected TR, the stop ought to be equal to the depth of the TR beyond the bottom or top of the TR.

Correct stop positions go a long way to a consistently profitable account. Some would say they (stops) are all the way.

Published by Day Trader

I flew fast jets for 30 years of my life. I've traded full-time, more or less, for the last ten years, initially from fundamentals and over the last few years as a dedicated day trader. I live on the North Norfolk coast.

Leave a comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: