Sunday, 10 July 2011

Maximise the profit with Trail Stop Loss

I found most of the traders have no problem in enter the market. But, they do face difficulty in determine the exit price.

Bearish Market:
For traders who has locked in the counters at early stage, here is the hard time for you. How to make a judgment call towards a reasonable exit price is very critical. Few important considerations as below need to put in place before the decision is made.
1. How to cushion your hurt and protect your capital if the price continue to go down.
2. How to derive a good exit price by not getting confused by the price fluctuation "noise" -- Price re-bounce after your selling order just filled.
I believe most of the traders do have similar experience that they would continue to hold the counter when the price go down with hope that it would re-bounce. However, most of the time the price would continue to getting lower and lower.

Bullish Market:
"Life is like roller coaster"! Similar, this happen in stock market market as well. During bull market, trader normally would lock the price at a lower price. However, they would still face the difficulty in deriving a good and most profitable exit price.
1. Trader few regret for not patient enough by executing profit taking at a lower price compared to "tomorrow".
2. Traders are too greedy to keep waiting and waiting with the hope that the price would continue to break historical high price. However, stock market is full or uncertainty that the price might collapse in the next second and all the profit that you have made might be vanished. Always remember that, "Mr.Bull climbs the steps while Mr.Bear jumps out from the window"

Thus, it is critical to master the skill to derive a good exit price in order to protect your capital as well as maximize your profit. I had found a good training material pertaining how to create a good stop loss thru "Trail Stop Loss" strategy.

Enjoy the Video Clips below:


I hope this video clips is useful and could help to maximize your profit and at the same insurance your capital well!

1 comment:

  1. Good : the example is quite simple

    Cons : It is too simple that it is not so easy to be executed in real cases. Haha