The art of the "stop loss"
- Thread starter Itzikuku
- Start date
yes, there is.
for explanation to the previous poster, a "momo player" is one who follows the recent price action/momentum. if price is going up, it will continue to go up, so you follow the momentum
absolutely a profitable method if done intelligently.
my point is that it is NOT the only method (or reason to go long)
i OFTEN go long when the monentum is DOWNWARDs. that is what is commonly referred to as a "fade" or countertrend play.
if works too, if done correctly.
my point is don't make the (frequent) error of assuming that your (narrow) methodology is the only way/reason to go long
there are many many many ways to skin the market cat
for explanation to the previous poster, a "momo player" is one who follows the recent price action/momentum. if price is going up, it will continue to go up, so you follow the momentum
absolutely a profitable method if done intelligently.
my point is that it is NOT the only method (or reason to go long)
i OFTEN go long when the monentum is DOWNWARDs. that is what is commonly referred to as a "fade" or countertrend play.
if works too, if done correctly.
my point is don't make the (frequent) error of assuming that your (narrow) methodology is the only way/reason to go long
there are many many many ways to skin the market cat
I am a little stubborn to put stop loss (my weakness) but the way I do is if I am short a stock at 42 and it goes to 43 , instead of putting a stop loss, I sell PUT for $40 and if I am long a stock at 42 and it goes to 41, I sell Call 42.5.
Many times I manage to close my stock position with profit but that added option part becomes a problem.
I did not mean to use my method. I just wanted to tell you how I do it.
Many times I manage to close my stock position with profit but that added option part becomes a problem.
I did not mean to use my method. I just wanted to tell you how I do it.
All of you are from the U.S:? I am from Argentina. We have here a very little market, but it is in a bullish supercycle that nobody knows when it will stop. Many stocks climbed more than 20 times since December of 2001. Is among 2000 % of profits if somebody with steel eggs could maintain the shares without selling it for 6 years.
Here you have one pair of charts as an example:
http://www.ravaonline.com/v2/empresas/png_graficox.php?e=bma&n=6&t=a&c=0
http://www.ravaonline.com/v2/empresas/png_graficox.php?e=mirg&n=7&t=a&c=0
The bottom of the market was when the people tossed our president of the government in middle the biggest economical crisis. Many people died and in the streets the people burn all and hacked the windows of the banks whom refused to return the savings to their clients. In middle of that, the local market began to rise strongly. It was rare.. most of people crying for their savings in front of the banks, while others became rich.
Turning to the topic, I think that in swing trading, many times it is necessary to watch not only what are doing the shares you have but also the whole market. If the whole market is upward, in spite of your shares are falling, it is possible to hold them waiting to the quotes will follow the rest of the market. Is correct this?
Here you have one pair of charts as an example:
http://www.ravaonline.com/v2/empresas/png_graficox.php?e=bma&n=6&t=a&c=0
http://www.ravaonline.com/v2/empresas/png_graficox.php?e=mirg&n=7&t=a&c=0
The bottom of the market was when the people tossed our president of the government in middle the biggest economical crisis. Many people died and in the streets the people burn all and hacked the windows of the banks whom refused to return the savings to their clients. In middle of that, the local market began to rise strongly. It was rare.. most of people crying for their savings in front of the banks, while others became rich.
Turning to the topic, I think that in swing trading, many times it is necessary to watch not only what are doing the shares you have but also the whole market. If the whole market is upward, in spite of your shares are falling, it is possible to hold them waiting to the quotes will follow the rest of the market. Is correct this?