Sentences with phrase «tight stop loss»

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.

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.

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.

Traders still holding positions in the coin should now use tight stop loss orders, while investors should stay away from entering new positions here.

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.

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.

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.

tight stop losses, use of charts, sticking clear of falling knives.

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.

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.

Note that waiting for this retrace entry at the key support level would have allowed you to get a tighter stop loss on the trade and a 4R profit as a result.

These «hot points» are typically very high probability setups, entering them with a tight stop loss can lead to substantial risk to rewards, the setup in this video netted traders R: R of 1:3 or 1:4.

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.

Once you will spot the occasion, you can benefit from that by entering the trade at the possible end of the correction with a tight stop loss order and a very promising potential for a reward, receiving desired risk to reward ratio.

Note the 50 % retrace entry of the pin bar, this is an entry technique we teach on our courses and it works good on long - tailed pins, giving you a much better risk reward potential due to the tighter stop loss distance.

Or, at the very least, keep a very watchful eye on the stock and set a tight stop loss potentially.

By using a tighter stop loss, I was also able to achieve a better risk to reward ratio.

The only benefit to a relatively small pin bar is a tighter stop loss.

Keeping a tight stop loss for some means the death of a thousand cuts.

I then plan to hold the other half on a tight stop loss, monitor for new developments, with my $ 16.96 Relative Fair Value as a secondary price target.

You can either take the trade with a tighter stop loss as we discussed above, or you can use a normal distance stop loss (in the example of a pin bar, a normal stop loss distance would be the full length of the pin bar from high to low).

Positions that you plan to hold for a few days or weeks are usually bad candidates for a tight stop loss strategy.

If you're less sure that your trade will be a winner, you should opt for a tighter stop loss.

If you are doing some quick day trading, a tighter stop loss strategy may be ideal.

When to use a tight stop loss — If you believe a trade could move in your favor but will definitely continue to move away from your entry point after it reaches a certain price, you should use the tightest stop your trade will allow.

If you have good reason to believe a trade will continue in the direction you desire, it doesn't make sense to use a tight stop loss.

However, what I like about this is that I can run a tight stop loss, with maybe $ 2 of downside risk vs. $ 10 - 15 of upside profit.

This one's slightly less aggressive, so we need a tighter stop loss and somewhere in the region of 4230 looks good.