Trading Secret #5 is ready for you
October 17, 2009 · By Adam · Filed Under Technical Indicators
Here’s Trading Secret #5 …
Enjoy this Trading Secret. Your sixth Trading Secret will be published here on October 20th at 2 p.m. EST.
Adam Hewison
President, INO.com
Co-creator, MarketClub
7 Secrets to Successful Trading
Fairly Good.
I am trying to understand the use of stops better. With a tight (1-2 %) stop the chances of getting stopped out with random fluctuations I think would be high. How do you address this?
Th,
Thank you for your feedback.
You may find this blog posting we did some time ago very useful when it comes to employing stops for market positions.
http://club.ino.com/trading/2009/06/how-to-use-money-management-stops-effectively/
All the best,
Adam
Adam,
I’ve seen a few trading plans such as buy when price exceeds high of last 10 trading sessions or sell when price drops below 10-day EMA. Another one is buy when price exceeds high of prior day when an “inside day.” Can you recommend some good trading plans?
Jonathan,
Most trading plans work over time, what creates a problem is the discipline to follow them.
The 10 day system you described above works if you follow it religiously and you give it enough time.
MarketClub’s Trade Triangle strategy definitely works when you use its filter system.
Having a game plan and a definite strategy puts you ahead of the pack. I highly recommend this path for traders.
All the best,
Adam
hey adam,
thank you for your video. I appreciate your stop loss strategies.. I was wondering if you could do another video on different stops for different derivatives. You focused on stocks but what do you use for options and forex? also what do you do if your confidence is down. I ignored some stops and im trying to get myself back in. thanks.
lou gonell
Lou,
Thanks for your feedback.
I will try and do a video on stops some time in the future.
All the best,
Adam
Adam,
My wife Cheryl, and I are new to the market, and trading, we do have a nice 401K that has been gaining ground since the big sell off.
The question I have for you is this.
Cheryl, and I have been buying stocks at OTC prices (penny stocks) and are holding them as a , what we call, “after the recession recovery portfolio”.
Some have done okay, and some have kind of gone sideways for a little while.
Do you think it’s a good idea to hold these stocks for our retiremnet, and keep doing what we’ve been doing?
Some of the stocks we bought were C, Fannie, Freddie, and we just bought Lehman.
Thanks,
Terry
Terry,
The name of the game is making money period. If you and Cheryl are making money great.
As for holding stocks for retirement no way. The days of buy and hold forever are over. These are trading markets.
For the future you need to (1) have a game plan and (2) manage that game plan.
All the best to you and Cheryl.
Adam