Trends - With Limits, No Stop Losses

Introduction - Contents - Next - Previous - (Start of Section - Next Section - Previous Section)

The following idea is that of limits. Using the limits is a way of locking in your profits, to make sure you get your return before it drops back down. In these examples, I am using the following concept:

If a profit for the day exceeds the given limit (x%) then the profit for the for the trade is the limit amount. If it does not exceed it, then the profit or loss is what ever it is at the end of the day. The idea behind this, is that there may be stray shares that will jump up high following a specific trend, before plumeting back down. If we were to look at a candle bar graph it would be displayed as the following:

Now I am not holding much hope for these, since there is an old saying with teh stock market that amatuers tend to ride their losses and limit their profits. By implementing a limit, we are doing just that. So I don't expect to see any big wins, but probably plenty of losses. But let's just try it and find out shall we!

Introduction - Contents - Next - Previous - (Start of Section - Next Section - Previous Section)