Sign-up for our 21 day free trial!

The contents on this page are a small sample of StockTradersHQ's member resources (FREE Trial!)

1. Our staff of professional technical traders analyze 1,000's of potential stocks every day to provide you with a list of stock picks with the greatest potential for explosive gains.

2. These stockpicks are traded with our real-time portfolio. Email alerts are sent for every entry and exit. Through the member-only website, you will have our support every step of the way.

3. Our subscription service provides all the resources, stock picks and tools an investor needs to make very profitable, consistent trades while maximizing gains and minimizing losses.


The Circuit Breaker Part 1

It is impossible for traders whether amateur or professional regardless of experience to avoid losing trades.  If you trade enough you will lose some trades it is just the law of averages.  However unlike amateurs experienced traders are cognizant of this inevitability of losing and are able to accept losses without emotional upheaval.  The difference is that the experienced trader has a systematic method to ensure those losses are kept to a minimum the amateur trader does not. 

Every trader should employ a losslimit system to limit losses to a fixed percentage of a portfolio's value or a fixed percentage loss on each trade. Think of each trade as a circuit breaker that will trip off and shut the trade down if it goes too much against you.  It is a safety measure so you do not shock yourself beyond recovery.  With a loss limit system in place exiting a losing position is an unemotional decision that is not affected by any hopes that the stock will turn around in your favor any minute now. 

Loss Limits Based on Percentage
Your losslimit system should be implemented before entering each trade. Before entering the trade you should simultaneously calculate how much downside in the stock you can tolerate without breaching your loss rule. After establishing your position you would then place a stop loss order within a maximum of say 1% loss of the total available balance in your trading account (your risk capital). Of course your stop can be tighter than 1% but remember tighter stops increase the chance of many small losses as a result of those stops getting filled.  Looser stops involve more risk but they will keep you in the trade longer.  Regardless of the size of your capital it is always wise to be conservative rather than aggressive when first devising your trading system. 

If you use STHQ recommended 10% position size on any one trade then your stop could be 10% below your purchase price on each trade and that would equal a maximum of 1% loss to your overall portfolio.  This is only a guideline you can devise your system with tighter stops and bigger positions or smaller positions with looser stops.  This is always subject to each individuals trading style and risk tolerance.

Copyright 2003-2006 StockTradersHQ.com is owned and operated by The Winners Edge a subsidary of DMC Systems LLC. All rights reserved.   This web site is optimized for Internet Explorer 5.0 or greater!DISCLAIMER  [Articles| Bulletins| Charts]

^GoTo Top^

Buy Outlet Canada Goose Jackets Parka Online Buy Replica Prada Clutch Bags Online Buy Replica Hermes Birkin Bags Online Buy Replica Celine Clutch Bags Online Buy Replica Christian Louboutin Shoes Heels Online prada bags replica celine bags replica christian louboutin shoes replica hermes birkin replica canada goose jackets outlet Replica Canada Goose Jackets Parkas Coats Vests Outlet Sale Replica Hermes Birkin Bags Kelly Handbags Replica Prada Clutch Bags Messenger Handbags Outlet Sale Replica Celine Luggage Tote Bags Replica Christian Louboutin Shoes Heels Sandals Pumps Outlet Sale Canada Goose Jackets Sale Prada Mini Luggage Tote Bags Sale Hermes Birkin & Kelly Bags Sale Celine Mini Luggage Tote Bags Sale Christian Louboutin Shoes Heels Sale Celine Bags Luggage Tote Mini Outlet Sale Prada Bags Clutches Purses Outlet Sale Canada Goose Jackets Outlet Sale Toronto Christian Louboutin Shoes Boots Outlet Sale Hermes Bags Birkin Purses Outlet Sale Canada Goose Jackets Canada Goose Jackets Outlet Authentic Canada Goose Outlet Buy Canada Goose Outlet canada goose outlet cheap canada goose sale Canada Goose Online Jackets Canada Goose Parkas Outlet Buy Canada Goose Parkas Cheap Canada Goose Jackets Canada Goose Outlet online Cheap Canada Goose Men Jackets canada goose cheap canada goose men outlet canada goose outlet canada goose jackets sale Official Canada Goose Jackets Men Online Shop Official Celine Bags Luggage Tote Mini Online Shop Official Prada Bags Luggage Tote Online Shop Official Hermes Bags Birkin 30Cm Online Shop Official Christian Louboutin Heels Shoes Online Shop Designer Christian Louboutin Shoes Heels Sale Outlet Designer Celine Bags Luggage Tote Sale Outlet Designer Hermes Bags Birkin Sale Outlet Designer Prada Bags Messenger Sale Outlet Designer Canada Goose Jackets Men Sale Outlet Cheap Canada Goose Parka Canada Goose Jackets Online Hermes Bags Birkin replica Prada Bags Clutch Sale Replica christian louboutin shoes outlet Canada Goose Men Jackets Outlet celine Luggage Tote bags Canada Goose Outlet Store canada goose outlet Hermes Birkin Handbags Outlet Sale Celine Handbags Trapeze Outlet Christian Louboutin Shoes Outlet Sale Prada Handbags Clutch Outlet Sale Canada Goose Parka Outlet Sale canada goose mens parkas Christian Louboutin Shoes Outlet Celine Micro Luggage Tote Bags Outlet Canada Goose Jackets Men & Women Outlet Prada Clutch Bags Outlet Hermes Birkin Bags 30Cm Outlet hermes replica handbags, cheap celine bags, louis vuitton bags, canada goose outlet toronto factory, Shop Canada Goose Clearance Clothing Online Sale Canada Goose online Canada Goose shell louis vuitton womens Moncler Outlet Store celine bags Sale Canada Goose moncler austria Canada Goose Outlet Kijiji