≈ Plan your trade and trade your plan ≈

Traders,

Stocks are down in early trading on Thursday.  The early selling is being attributed to renewed fears of a second wave of coronavirus as economies re-open, reaction from the FOMC meeting yesterday where the Fed painted a dire economic outlook where they’ll need to keep rates in the current 0.00% – 0.25% range all the way through 2022 and good old fashioned profit taking after some historic moves to the upside over the past few weeks and months. 

If you’ve been new to trading in the last few months during the historic uptrend that saw the biggest 50 day surge in stock prices on the S&P 500 in it’s history you haven’t seen to many big red candlesticks during that stretch.  But, in most market conditions it is normal and healthy to have green and red candles, stocks moving up and down over time in trends and price action that is not simply one sided.

If you are trading, part of your trading plan needs to include a Target and a Stop Loss.  Recent upward price action should have allowed you to reach a few of your profit targets.  And today’s action should trigger some stop losses.  These are the potential outcomes of any trade. 

As your trades develop, it is wise to adjust stops over time to lock in profit, control your risk and adjust your exit plan.  If you have done that over the last several days and weeks, great job!  You are trading with discipline.  If you still need to learn the mechanics of how to do it, or develop the discipline to force you to adjust your stops through your rules then it’s important to identify these areas you need to work on and build your rules out as soon as possible.

Stop loss placement, then adjustment, is something that needs to first be understood theoretically.  Once you are making some of the profit you were targeting, you need to move your stop loss to lock that in.  But, more importantly, stop loss placement and adjustments need to best be understood through your rules.  You should have specific rules that determine when, why, how, and where you will adjust your stop losses.

If you have not built those rules out yet, a great place to start would be the STEP System Course or asking questions during the daily trader’s lounges.  Another resource you can use is the video of the day (see below) of the replay from last nights webinar from Coach Gino where he covers some of the basics on this topic. 

You will trade with more confidence if you build rules that you understand and can execute.  Remember, no trader is profitable all the time, and stop losses and exiting is a part of your overall trading plan.  When you get stopped out on a trade, simply journal it, learn from it and move on to the next trade.

#TeamTackle

Chart of the Day

AAPL Daily Candlestick Chart

In last nights webinar, Coach Gino used AAPL as an example on how to place Stop Losses.  With the stock in a recent uptrend, it had reached the upper part of its channel.  Technical analysis is crucial when placing stop losses, and candlesticks, channels, trend lines and intraday charts all play a role.

Video of the day

The Art of Stop Losses – Webinar Replay

Watch the replay of this special webinar from Tackle Trading on the Art of Stop losses with coach Gino Poore.

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.