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The Best Trading Strategy in 2009 When I trade stocks or options I like to use money management rules to limit my downside risk. When I purchase a stock or option, I like to limit my losses on a losing trade before they develop into large losses. For example, I will normally sell a stock if it drops 7 to 10% below my entry price. Limiting losses is an essential part of every successful trading program. The problem in today’s volatile markets is that a stock can easily decline 10 to 15% in one day. This type of volatility can make the timing of your stock or option purchase very difficult. The table below lists some of the stocks that I currently own. These stocks are on a “buy” signal based on my trend following systems and my trend confirmation indicators. The table lists recent one day declines in these stocks that I own. Following a money management discipline of limiting losses can prove difficult with current market conditions. You could buy a stock and then have to sell the stock the very next day if it suffers one of these types of price declines. In this video you will discover two trading strategies that provide outstanding profit potential and at the same time provide substantial downside protection. This downside protection can help you maintain your positions during volatile price moves and can result in a high percentage of winning trades.
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FUTURES AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES. PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. |