Posts Tagged ‘buy signal’
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 todays volatile markets is that a stock can easily decline 10 to 15% in one day. This type of volatility can …