Mohab Ahmed Nab
عضو نشط
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it is a price level that indicates the trading idea or pattern is no longer valid, and getting out is the best thing to do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.
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it is a price level that indicates the trading idea or pattern is no longer valid, and getting out is the best thing to do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.