(Stop loss and Gap Down (2

الموضوع في 'السوق الأمريكي للأوراق الماليه' بواسطة Mohab Ahmed Nab, بتاريخ ‏4 ديسمبر 2002.

  1. Mohab Ahmed Nab

    Mohab Ahmed Nab عضو نشط

    ‏16 نوفمبر 2002
    عدد الإعجابات:
    مكان الإقامة:
    United Arab Emirates
    This is a very interesting subject, and I devoted most of time

    Thanks for translation

    to this subject.
    As i follow one simple rule when I trade my accounts or advice customers which:
    The winning trade is one that does not generate a stop loss order.

    Stop loss are not only stops in price as most traders think,
    Stop loss is classified into 3 categories:

    1- Price Stop:
    this is the most popular stop, and most traders apply in their trading
    it is a price level that indicates the trading idea or pattern is no longer valid, and getting out is the best thing to do

    2- Signal Stop,
    this is a stop generated by indicator of trader's choice.
    for example a signal stop is an RSI sell signal, or MACD sell signal, even if the target is not reached

    3- time stop
    this is the most effective stop, but traders ignore it cause the lack of knowledge required to place this stop

    Time stop is a duration after which, you will exit the trade whether you are wining or lossing even if ur price stop did not reached yet

    for example, a trader see a 3 days uptrend in QQQ, and he expects a gain of 10% in this duration, and he will use a price stop of -2% and he will use a time stop of 2 days

    if QQQ jut went up 5% after 3 days, a trader will liquidate a position as time stop of 3 days passed, even his target and stop loss level were not touched.