The closer we’re able to enter to the price that we intend to exit at if we’re wrong gives us a HUGE EDGE! Here’s what I mean…
Don’t arbitrarily place your stops!
As you’ll see in the video (click the image above), where we place our initial stops and how we raise those stops has everything to do with the chart. Some of the questions we need to ask ourselves include:
- Where is support?
- Is there a significant moving average?
- Have trend lines been formed?
Once we know the answer to those questions, ideally we are able to place our stops below all 3. The reason why is because when all 3 are broken, it is typically going to result in a definitive change in the trend. Our goal for the trade is to capture the bulk of the move and to ride the trend for as long as possible. We never catch the exact top BUT we are able to ride massive trends like this and while we had other BIG winners last year, this one trade alone could have easily made our entire year!
Never Give Up!
Check out some of these other videos:
- 8 Trading Tips for 2018 and Beyond
- 5 Things I WISH I Knew BEFORE I started trading
- Path to TRIPLING the S&P 500 in 2017