CHAPTER 3: DO STOPS WORK?
What size gain is required to overcome a given loss? See Table 3.1.
Hold time loss is the largest potential loss during a trade. See What Is Hold Time Loss?
A mental stop is one kept in your head and not placed with a broker. Only seasoned traders should use mental stops. See Mental Stop: For Professionals Only!
Avoid placing stops where other traders place theirs. See Minor High or Low Stop: A Good Choice.
Avoid placing stops at round numbers (those ending in zero). See Squaring Off Round Numbers.
Chart patterns represent good stop locations because they often act as future support and resistance areas. See Chart Pattern Stop: Too Costly?
Measure the distance from the stop to the buy price to make sure it is not too far away. See Chart Pattern Stop: Too Costly? ...
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