What's up everyone? Alright, so I'm gonna answer a question that was posted in the comments of one of my last videos and the question was how do I set or where do I set a stop when I'm taking a trade. So in terms of setting stops and setting profit Targets this is always tricky because you never know how much a stock is going to go up. but you can control how much you're willing to lose. And so there's two ways of setting a stop.
One is to set an arbitrary mental stop that is like 15 or 20 cents from your entry. With a thousand shares, it's 150 to 200 of risk. The second way is to set a stop, not arbitrary, but based being just at support The most recent support. However, if that's 50 cents away, then maybe you're getting in too high.
But ultimately the best stop is to stop out right around just below support. So if support holds, you keep holding. But if support breaks, that's when you cut your loss.
thank you Ross
With Intel I was more patient today once I was green and had a long 700 usd trade 👍 With large distance I moved SL up
I know these 'YT shorts' are annoying for some creators, but this was actually a very useful reminder to a FAQ of trading that normally gets lost and forgotten in hour-long lectures.
How do you feel about factoring ATR when calculating trailing stops to ride the trend as far as it will go?
Yeah, just below support, then all the market makers spike it through support to clear the stops out and then take it higher.
Thank you!! 👍
hi ross, we miss your face buddy. good to see you again 😊
Set your stop in the place where if it is hit it means your trade idea was wrong
In the last second, he stared off into space, as if to remember, a single trade where he spilled hot coffee on his lap and couldn't stop out as the worst trade of his life got away.
It always seems to go down and get my stops, then immediately race back up