There's one thing traders do that can increase their likelihood of getting stopped out of a trade...
And let's face it, getting stopped out — whether it's for a loss or a small gain — is annoying.
Taking losses and sticking to your stops is part of the game…
And crucial to making it as a trader long term.
But if you can cut out this one habit that can increase your chances of getting stopped out…
You can put your trading on the right track.
So here's the habit you need to cut out of your trading and two tips to help you do it…
How To Reduce The Chances Of Getting Stopped Out
As a trader, it's crucial to consider the timing of your entry and the potential risks that come with it...
The problem is, most new traders see a stock spiking at the open and they jump right in.
But trading right at the market open increases your chances of getting stopped out.
It's the most volatile time of the day so stocks can experience wild price swings.
Now, that doesn't mean entering right at the open is bad — but you have to accept the risks so you can make more informed decisions and adjust your trading strategy accordingly.
If you don't want to accept the risks and you're sick of getting stopped out of trades, use these two tips…
Wait For 9:45 a.m. Or Later
I've written about the advantages of waiting until after 9:45 a.m. a lot lately — so I don't think I need to give a big lesson again here...
When you're armed with this knowledge, you can make more calculated trading plans including potential entries and exits.
Whether you decide to trade right at the open or not depends on your risk tolerance.
If you're comfortable with the possibility of getting stopped out early and your risk level, then go ahead and take a trade.
But if the idea of being stopped out early doesn't align with your risk tolerance — or you can't afford to waste a day trade — you may want to reassess your entry strategy and find a better fit.
(As an Amazon Associate, we earn from qualifying purchases.)
13809 Research Boulevard, Suite 500, Austin, TX 78750
*Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.
This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.
StocksToTrade cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing.
StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.
Post a Comment
Post a Comment