Stops Archive
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Want to Trade Without Stops? (Part Deux)
Treehouse was recommended as a long buy on this blog on June 29, 2010. A parabolic stop took us out of the trade, made a bit of money and put it someplace else. We did not think too much of it until two days ago when the market gapped THS down hard. Lessons learned: 1. [...] -
Interesting Stocks for 7/12/2010.
We will feature two stocks that we are looking to buy in one of our paper accounts. WAB: Wabtec. In a downtrend channel. However, it recently entered a congestion area with major support around 39.00. The entry is based on a Williams %R oscillator. Place an initial stop at 35.40 and do not pay more [...] -
Market Restesting the February Lows.
The stock market is a tough mother-efer. Pardon our french. We have not seen an inverse ETF turn bullish since the week of April 19. Yet, the indexes turned against our longs with force today. It is our opinion that this correction does not feel bearish. We are at support in two of the three [...] -
The Short Power.
I read yesterday on Twitter that the current correction is a bear trap. A bear trap is a correction in stock prices that institutions create to purchase more shares at lower prices. The rumor is that institutions want to force prices down to the 200 day moving average line on the major indexes and then [...] -
Another Leg Down?
I got long signals on a bunch of short ETFs. We might be retesting the lows of last week. There is some volume acceleration on the short side. Tighten your stops. PS. I also got a signal to go long on 20-yr Treasury Bonds. (TLT) -
The Stock Market is Showing its Age.
On the post dated April 19 and entitled The Market is Turning and not Because of Goldman Sachs. we declared that the stock market was overdue for a correction. Now, that was over a week ago. The stock market is starting to show its hand and we uncover two pieces of evidence: one from blog [...] -
Want to trade without stops?
Stops: A fundamental part of any trader’s plan. It is that price where a strategist looks to sell if things go wrong. There are several types of stops that a trader can use in the market place. Some of the most popular examples are: Stops based on percentage loss. For example, a 8 percent stop [...] -
Top 10 Ways to Lose Money in the Stock Market.
Not following a trading plan. Trading plans are the rules that are tailored to the individual investor. They should be written in a similar way as a business plan. The rules should include the systems used and parameters for entry and exit of trades. Not setting stops. Not having good money management. Having beginners luck. [...]