Matthew Kerkhoff, options expert and editor of Dow Theory Letters, continues his 14-part educational...
Right Way to Set Stops, Profit Targets
02/19/2015 6:00 am EST
Traders not using stops to limit risk are setting up for disaster, warns Hubert Senters, who teaches a proven-effective method to set stops and profit targets using Average True Range (ATR).
One of the most common questions I get is, "What stop loss and profit target should I use for my trades?"
The video below answers that exact question. It's a good question, and I'm hearing it more often, which means more active traders are starting to use stops and profit targets.
If you are not using stops to limit your risk, it's not a matter of "if" you will lose money, but rather "when and how much."
In the video, I'll outline an easy and effective way to set stops and profit targets using Average True Range, or ATR. The Average True Range is just way to calculate the range that your stock trades over a period of time.
See related: A Pro's Favorite Safety First Indicator
Let's dig into it with the video below:
Related Articles on STRATEGIES
Profit from a market by capturing a trend. Money management is key. The battle is often from within,...
Has Mr. Market (S&P 500/Equities) priced into too much positivity, while inflation remains at ba...
Berkshire Hathaway (BRK.B) is well known as the huge operating and investment company that was built...