Sentences with phrase «tight stop»

The phrase "tight stop" means setting a strict and close limit on potential losses in financial trading or investing. Full definition
Many traders are hesitant to use tighter stops in volatile markets because they see the large swings increasing the likelihood that the position will be taken out.
If you worked with tighter stops, your risk capital would be even smaller.
For this reason, any time you short stocks, you should have a very tight stop above it.
As such, because our buy signal was not yet confirmed, all new long trades were entered with reduced share size and tighter stops in order to reduce capital risk.
The good thing about a long trade here is that given the tight trading range recently a relatively tight stop can also be applied just above the $ 47 mark.
This approach uses extremely tight stops and looks to lock in fast profits.
Maybe okay to buy some shares if you have an exit plan with a fairly tight stop loss order in place, but covered calls are not the right strategy for that situation.
When identifying a stop loss point, it's vital to assess how tight the stop loss is on your preferred exit point.
And the move higher seen today could have taken out the weak hands — i.e. bears with tight stops (and, hence, low - risk tolerance).
For instance, if you're taking a long position in a bearish market, you would want to use tighter stops than you could get away with if you were trend trading.
This approach uses extremely tight stops (only 1 - 2 bars) and looks to lock in small profits fast, and then let the rest of your position ride for huge profits.
On this setup my stop loss was set at 93 pips, setups like this allow for nice tight stops which make for great risk to reward ratios.
Still, other traders might want to use the trade entry trick to get tighter stop losses so they can trade more contracts or lots per trade, note that does not mean they are risking more money per trade, it means they are trading a bigger position size with smaller stop loss distance, checkout this article on position sizing for more.
Market junkies who have a knack for these kinds of fast - paced systems usually look at the hourly time frame or lower to aim for smaller profits and place tight stop losses.
When volatility picks up, as it has over the past few weeks (especially last Friday), the price action becomes less reliable, thereby making it very difficult to set tight stops.
The coin remained above the declining trendline of the correction and a move above $ 190 would trigger a new short - term buy signal, while traders could also open short - term positions now, with a relatively tight stop below $ 175.
Although Friday's action was bullish, and we now have solid unrealized gains in the open ETF and stock swing trade positions in our model portfolio, we continue to trail tight stops in order to reduce risk and lock in gains whenever possible.
Nice tight stop going into a major news announcement was my overiding concern.
Stocks might be a little different, but a $ 50 stop in Corn, which is one point, is simply too tight a stop, especially when the 10 - day average trading range in Corn recently has been more than 10 points.
You can follow the discussion on Trading Stop Loss Strategy: Tight Stops vs Breathing Room without having to leave a comment.
As such, it pays to run with tight stops on all trades right now (unless you are holding an intermediate - term position with a large profit buffer and do not mind giving back some gains).
Traders still holding positions in the coin should now use tight stop loss orders, while investors should stay away from entering new positions here.
However, since the bull flag pattern did not follow - through to the upside, we maintained a very tight stop on the additional shares, which we closed for a tiny loss of 1.6 % on August 2.
We are not ruling out a retest today of yesterday's 2762 low, but we want to be prepared to buy early weakness, using tight stops.
Nice tight stop going into a major news announcement was my overiding concern.
This is traded with a tight stop using a customized ATR indicator.
This is traded with a tight stop using a customised ATR indicator.
If our market timing model changes from «Buy» to «Neutral» or «Sell» mode, we act on it immediately because the change in market sentiment often comes swiftly, just as yesterday's big selloff occurred right after we notified subscribers we were closing long positions and / or moving to very tight stops.
As such, we're still building on existing long positions, but much more cautiously (smaller share size, tighter stops, etc.).
After the price of $ BITA spiked above the $ 20 level, we made a judgment call to trail a tight stop below the prior day's low in order to lock in gains in the event of a sharp pullback.
Buy when a security breaks above the highest point of a longer - term range that it has been confined in and place a tight stop loss in case the breakout fails.
Sell when a security breaks below the lowest point of a longer - term range that it has been confined in and if you are short - selling, place a tight stop loss in case the breakdown fails.
Traders could still play the trend with smaller positions and tighter stops, but the risk / rewards ratio is not favorable anymore.
Fund willingness to stomach slow starts in January to begin the year — especially in light of the proliferation of «tight stop» multi-managers with a massive institutional AUM concentration, and a pod / center book structure which exacerbates crowding — can «turn wrong - way fast» when CRO's become de facto heads of trading into potential deleveraging.
However, market is volatile and tight stops are advisable
This provides a tight stop loss with our stop loss just above or below the pin bar high or low and a large potential risk reward on the trade as a result.
This stop placement gives you a tighter stop distance which increases the potential risk reward on the trade.
If you have only been following this blog within the past month or two, or have become a new subscriber to our Wagner Daily stock newsletter within the same period, you have only seen us operate primarily in «capital preservation mode,» where we enter all new trades with both reduced share size and tight stops.
Our stop loss on this setup would be around 100 pips and the upside potential would be over 300 points, this is how professional traders look at the market; analyze levels, look at the price action signals, nice tight stop and nice wide profit target.
Obviously we are wrong with a tight stop above the 200 day moving average, however looking at the dumb money positioning and various bloggers opinions, we believe there is a lot of potential disappointment coming.
Personally when trading counter to the main trend I'll always go for a 50 % retracement entry (offering a tight stop and therefore a much more realistic profit target).
tight stop losses, use of charts, sticking clear of falling knives.
Another common workaround is to trade higher time frames with tight stop - losses.
You can't survive without a stop loss, but they can, or at least they can for much longer than you or I and this is why day trading is dangerous; because traders put very small / tight stop losses on their positions they often get stopped out by normal daily price fluctuations in the market.
Hence, tighter stops are often possible and can improve the reward - to - risk ratio.
We can see price did re-test it on October 2nd of 2013, and a blind buy entry would have worked well here with a tight stop loss just below $ 1277.00.
Tighter stops should only be used on setups you feel very confident about and ideally after you've gained some solid screen time and trading experience.
In the chart example below, we can see how the trade entry trick can increase the risk reward on a trade by allowing you to get a tighter stop loss and thus trade a larger position size.
1) By waiting for a better entry, it allows you to get a tighter stop loss on a trade which in turn allows you to potentially make more profit on a trade by increasing your risk reward.

Phrases with «tight stop»

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