Comments on: A Reader’s Story About a Stop Getting Hit http://theessentialsoftrading.com/Blog/index.php/2009/04/30/a-readers-story-about-a-stop-getting-hit/ Information and resources for those looking to learn about trading and the markets Wed, 23 May 2012 13:10:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: UrbaneGorilla http://theessentialsoftrading.com/Blog/index.php/2009/04/30/a-readers-story-about-a-stop-getting-hit/#comment-14050 UrbaneGorilla Fri, 01 May 2009 01:00:54 +0000 http://www.theessentialsoftrading.com/Blog/?p=1213#comment-14050 Not only does everyone have this happen, but in this choppy market, it happens with greater frequency. if you get stopped out, the investor needs to plan their next entry on a pullback. It would seem they also need to learn several forms of stops. depending of the timeframe they are using. Drops below moving averages, drops below recent pivots, drops below the entry price less average true range. At any rate, it is far better to be stopped out and watch the price rocket up again than to look up and find your stock has just dropped 10%. Gains are good. That's why you trade. But you have to keep in mind that a 10% loss takes an 11% gain to get back to par. Learn to love being stopped out. But learn how to place a stop. @UrbaneGorilla Not only does everyone have this happen, but in this choppy market, it happens with greater frequency. if you get stopped out, the investor needs to plan their next entry on a pullback. It would seem they also need to learn several forms of stops. depending of the timeframe they are using. Drops below moving averages, drops below recent pivots, drops below the entry price less average true range. At any rate, it is far better to be stopped out and watch the price rocket up again than to look up and find your stock has just dropped 10%. Gains are good. That’s why you trade. But you have to keep in mind that a 10% loss takes an 11% gain to get back to par. Learn to love being stopped out. But learn how to place a stop.

@UrbaneGorilla

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