lots of good people there.
my opinion on stops:
i've used them. and i always get hit and stopped out.. im not setting my stops blindly either! i set them 1/4 below supports.. but if you noticed, for example, when intc preannounced warnings, all stocks plunged down low. thus, supports were broken (intraday).
now, i just use mental stops. i figure if i can watch the mkt, i dont need physical stops.
finally (which i think is most important), is that I TRUST my TA. I think it's that trust that i have that is really my success.
logically speaking, how can you trade without trusting your indicators.
finally (again) -> i play the leaders. i think the TYPE of stocks i play are an important factor. I got more BIG down MOVES on small caps, more than anything. Do you ever see DELL down 15%? no way.
so, i take SAFETY in trading in multiple ways:
1) what type of stocks you're playing
2) what entry points you have (always buy near supports, because it will SLOW the down move. hopefully, allowing me to exit.. SEE how that is an important rule?
3) what MARKETS you're trading. (ex. high risk times, low risk times)
4) if you trust your TA
5) news driven stock? (i tend to avoid those)
6) small cap vs large cap. |
