9 Minute Read

Tackle Today: Stop Loss Logic

March 30, 2022

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«Listen to this week’s Trading Justice Podcast.»

Traders,

Yesterday’s Trading Justice podcast focused on stop-loss techniques for swing trades and investments. Listen to it. Here’s a recap.

A stop loss is an order to exit your position at a predetermined price if the stock moves adversely. Where you place it depends largely on the pattern or reason that you entered. Simply put, when your reason for entering is no longer valid – you should exit.

Say you bought on a bull retracement pattern. The stock is in an uptrend and bouncing off support. The assumption is that the uptrend continues. Thus, it makes sense to place your stop below support because if the floor gets broken, the trend is reversing. So why stay in?

We all have to balance the desire to give the stock room to maneuver without giving it so much space that we lose more than necessary. Many traders focus on critical support and resistance zones or a multiple of Average True Range to ensure they’re not getting shaken out on noise.

Our S.T.E.P. System is a great place to learn proper stop loss techniques.


Video of the Day: Gino’s Gems – Cleaning up Your Charts in Thinkorswim (TOS)

In today’s Gino’s Gems, Coach Gino Poore teaches how to clean up your charts in Thinkorswim (TOS).


Chart of the Day: Freeport-McMoran ($FCX)

Chart of the Day: Freeport-McMoran ($FCX)

Want a compelling example of a bullish hammer candle formed by bulls swarming to gobble up a dip? Check out FCX on Tuesday.


Today’s line up

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.

The Coaches Show Replay

If you missed last night’s episode where Coaches Gino Poore and Greg Holmes talked about Managing stop loss and placement on current trades that are triggered or not or would like to watch it again, check it out here.

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.

Trade Masters 7:00 PM EST

Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.


Trading Justice Podcast

Trading Justice 469: Stop Loss › Placement & Philosophy For Different Types of Traders

In this episode, Matt brings on Greg Holmes and Tyler Craig from Tackle Trading to discuss the current market recovery, commodities and have a great conversation on stop loss placement and philosophy for different types of traders.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

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.


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