42. How to Up Your Chances for Profit When Setting Stops

By admin on July 19, 2010, 10:50 am


www.informedtrades.com A lesson on how to incorporate technical analysis in identifying support and resistance and incorporating this into setting your stop loss when trading the stock, futures, and forex markets. In our last lesson we learned about the Average True Range (ATR) and how traders use this to get an idea of the volatility in the market so they can incorporate this into their stop levels. In today’s lesson we are going to add an additional factor that most traders consider important when setting stops, support and resistance. As we have learned in previous lessons many traders will use technical analysis to determine where support and resistance is in the market, and look for trading opportunities based on what that chart analysis tells them. In addition to using technical analysis to find support and resistance levels in which trades can be entered, many successful traders also use this method of analysis to determine where their stops should be placed. One of the most popular methods which we have touched on in previous lessons where many traders use support and resistance in their trading is when trading ranges in the market. Many traders favor ranges, as they provide traders with the ability to enter trades with tight stop losses and much larger potential returns. The reasoning here is that traders can enter a trade just below resistance or just above support in the range, place their stop just outside that level and then their profit target at the other

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20 Responses to “42. How to Up Your Chances for Profit When Setting Stops”

  1. FreeFOREXautoROBOT says:

    I like Forex robot – i got one free

  2. susanbunch1980 says:

    Excellent video! Expert advice! You should upload your video to Ewisdomtv

  3. trader2419 says:

    or poor and dumb or dumb and poor.?

  4. trader2419 says:

    maybe your just dumb.

  5. laton2010 says:

    stay away from forex it is the biggest scam business in the world. the 5% winners are the market seller in agreements with brokers. stay way from this devil business. go to another markets

  6. szemingyam says:

    Good education, Dave Thx.

  7. laton0 says:

    free signals
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    free signals
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  9. InformedTrades says:

    Hey Kedmania,
    Signals on Friday are still as reliable usually as any other day of the week, however with low volume things can be tricky.

    -Brendan

  10. kedmania says:

    hi david. Are day trading signals on a friday such as the hammer still reliable after the weekend close? I would like to buy some stocks on monday 29th when i see a confirming candle.
    thanks for your time,
    kedmania

  11. flyingdutchmanhero says:

    wow i followed every single previous lessons and the strategies i´ve already learned helped me save my last trading money i did the typical beginner mistakes but now i start to generate profits ;-) i really want to join ur trader community its the best i could do to train my trader skills! thanks very much for your incredible work.

  12. Toddfgjh says:

    Nice Nice Video. I really loved your video. Youtube can be a great asset for you. If you need any help getting your video exposed, check out this site called tubeviews [dot net] It has really done wonders for me, I have built 3 Channels up with videos at top in position and this is my forth channel i’m going to working on.

    Thomas Johnson

  13. signo23 says:

    Hi Dave,I’m new in the trading world,I’m getting more information that I can, I’m watching every single video you post and I think you are doing a great job.thank you.
    Best regards from spain

  14. DramaKingOwnsYou says:

    Great pointers on setting the stoploss and takeprofit. Greetings from Norway :)

  15. InformedTrades says:

    In my opinion if one doesn’t at least know where support and resistance lies in the market then they are trading blindly. This is of course just my opinion however others may differ. Best Regards, Dave

  16. Fullperson says:

    woah, you have to make all these calculations before a buy or sell? Is there enough time to set stops while running through charts?

  17. InformedTrades says:

    Hi Supportapples, Thanks for the comment I am glad you like the video and found them informative. Best Regards, Dave

  18. supportapples says:

    best information i’ve seen on setting stops ; you probably saved my account.

  19. InformedTrades says:

    glad you like them and thanks again for the comments, best regards, Dave

  20. technotuber says:

    Great series of videos.

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