Various models and methods for stopping losses and taking profits. Here are some additional models:
### Stop Loss Patterns
1. **Trailing Stop Loss**:
- **Definition**: The stop loss level is automatically adjusted as the stock price increases.
**Example**: If you buy a stock at SAR 100 and set a trailing stop loss of 5%, the stop loss will start at SAR 95. If the price rises to SAR 110, the stop loss will move to SAR 104.5 (i.e. 5% below SAR 110).
2. **Fixed Stop Loss**:
- **Definition**: Setting a fixed stop loss regardless of price movement.
**Example**: If you buy a stock at 50 riyals and set a stop loss at 45 riyals, you will sell the stock if the price drops to this level.
3. **Stop Loss Based on Technical Analysis**:
- **Definition**: Using support and resistance levels to set stop loss.
- **Example**: If the support level is at 48 SAR, you can place a stop loss at 47 SAR.
### Profit Making Models
1. **Trailing Take Profit**:
**Definition**: Like a trailing stop loss, the take profit level adjusts as the price rises.
**Example**: If you buy a stock at 100 SAR and set a 10% moving take profit, the take profit will move to 110 SAR if the price rises, and when it reaches 120 SAR, the take profit will move to 132 SAR.
2. **Multiple profit making**:
- **Definition**: Dividing the purchased quantity into several parts, and reaping profits for each part at different levels.
- **Example**: If you buy 100 shares at 100 SAR, you can make a profit on 50 shares at 110 SAR and another 50 shares at 120 SAR.
3. **Making profits based on technical analysis**:
- **Definition**: Using resistance levels to determine take profit points.
- **Example**: If the resistance level is at 130 SAR, you can set your take profit at this level.
### a summary
These models help traders manage risk and make profits more effectively. The appropriate model can be chosen depending on the trading strategy and market conditions.
