Where should you put a stop

Stops are setup specific .

There is no one universal stop strategy that works. Stop s just one element of your trading system. Unless all elements of trading system are in sync random stop strategy like put stop at 8% or 10% below your entry is not going to work. Plus it is a dangerous advice to give someone if you do not know the setup.

If you are going to be swing trading say momentum bursts , your stop strategy should be in line with that setup idea and should be as close to start of momentum burst. If your setup is trend following your stop should also be at level where trend failure will be.

If you are going to hold position for long term your stop strategy should reflect that. I have a long term position in XIV which is up 78% from entry and it has no stop. For position trading like that you can control risk by sizing of your position.

If you are trading short term mean reversion not using stops is best. Again in those situations risk is managed using position sizing.

Stops also depend on your own personality and returns objective. Some like wild swings in their account and can manage that emotionally. They can take their account up and down multiple times. They like the drama of it. Some like returns with very little drawdown. Their stop and setup strategy reflects that.

Unless you think through specifics of your entire trading strategy and also your personality and ability to handle risk there is no one specific stop that works. Once you are clear about what your setup and goal is there are many creative ways to use stops.

Your stops strategy is no different than managing relationship in real life. There is no one way to satisfy your boyfriend or girlfriend or husband or wife in a relationship. It depends on kind of girlfriend /boyfriend/wife you have and also kind of situation and it also depends on your own personality. Some like volatile relations , some like smooth drama free relationship. And also it depends on whether it is one night stand or long term relationship.

Same thing works for stocks.

Methods and philosophy

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

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