Nearly every traders nightmare is being stopped out of a trade – it happens to nearly everyone (except me of course but more on that later)
But, every traders 2nd worst nightmare is just around the corner, always lurking and always ready to twist the knife and maybe wiggle and jiggle it around for good measure
In fact this is likely worse than being stopped out for most inexperienced traders & active investors
What is it that could make your blood boil more than being stopped out?
Well it is being stopped out AND then watching price do what you thought it was going to do only without you participating in the move
THAT is a traders 2nd worst nightmare
Is this your “I was right dam it!” trade trade?
The only reason your not on it is that you were stopped out – maybe a little too tight on your risk control and stop placements
How many times have you had that “sick to the bottom of your stomach feeling” when price tickles your stop loss and then turns around and does the happy dance to your targets without you?
…and this is one dark experience that my group of insiders and I have not experienced for some years
Don’t mistake me for never having a loss – but I have not been “stopped out” for many years all because we utilise smart trading & investment practices
One now that I hope you will embrace now that you are about to be made aware of this boogyman slayer of method
The simple solution is to use stock options to express your trade instead of outright stock purchase, spread betting or CFD’s
Stock options, if they are new to you, are similar to a deposit (not accurate but good enough if this is the first time you are hearing about them)
Like a deposit you can NEVER lose more than the deposit amount no matter how bad things get – BUT should we be right with the trade idea we get a proportional benefit and the deposit can increase in value along with the stock price moving favourably
So you see you will never need to be stopped out again as your risk is controlled by the amount you use for your “deposit” to reserve or control say 100 shares
…because we know that we will never get stopped out again we get to wait and see if the stock price comes back to being favourable – which VERY OFTEN does with my methods
This is a very unique way of trading and allows you to turn a bad trade into a winner should you be right generally speaking with the stock (and most of the time we are all right) but sometimes you get the fine tuning of your entry slightly off kilter – which is why you may get stopped out in the first place
Now you will never be stopped out and you get to see truly if your stock selection does what you thought it was going to do and profit from it if you are right
Pretty cool huh!
That is in part what I send out in y daily alerts – which stocks Im trading – the options Im using as well as where I believe the stock will get to
I just need to then sit back and see if price gets there
…and if you want me to send you, your own daily alerts then follow the link below and start getting them in your inbox before the markets next open
Thats all folks
Still need a little more help?