4. Use the "stale" or "time" stop option: set a time limit for when
how much time do you give a trade for a certain move, and if it doesn't
can move fast enough, get out of it. If you don't make money, you are tying up money in a flat trade, which results in lost opportunities, and also bear the risk of loss if the trade moves against you. The fact that a trade is not moving in your favor increases the likelihood that it will not develop in the desired direction, but rather will move against you.
5. Volatility Stop: Stop trading if the market or your stock greatly expands its daily price range or begins to move against you in
within the entire daily range. You either reduce your position size,
or exit due to the increased risk associated with expansion
volatility. ATR (Average True Range) is one of the ways to quantify
assessments.
*continued in the next post