Comments on: Where do I put my stops to avoid being taken out? http://theessentialsoftrading.com/Blog/index.php/2008/10/08/where-do-i-put-my-stops-to-avoid-being-taken-out/ Information and resources for those looking to learn about trading and the markets Sat, 04 Feb 2012 14:17:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Mark Wolfinger http://theessentialsoftrading.com/Blog/index.php/2008/10/08/where-do-i-put-my-stops-to-avoid-being-taken-out/#comment-12933 Mark Wolfinger Wed, 08 Oct 2008 15:24:31 +0000 http://www.theessentialsoftrading.com/Blog/?p=599#comment-12933 Thus is a dual-edged sword. The purpose of stop loss orders is to get stopped out of a losing position. Suggestions: Trade much smaller size, allowing a larger loss on each unit. Not that larger losses are the objective, but that way the stop can be placed outside the range of normal volatility. Or trade options instead of stock, using spreads, rather than naked longs or shorts. Thus is a dual-edged sword.
The purpose of stop loss orders is to get stopped out of a losing position.

Suggestions: Trade much smaller size, allowing a larger loss on each unit. Not that larger losses are the objective, but that way the stop can be placed outside the range of normal volatility.

Or trade options instead of stock, using spreads, rather than naked longs or shorts.

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