Why do the professionals make consistently high incomes from trading stocks?
They always control and manage their risk. They use the candlestick patterns as support and resistance levels and allow the stock to "breathe" within a range they have determined is a natural price movement up and down within a tight consolidation, which is what the professionals prefer to trade.
Professionals do mitigate risk on huge-lot orders over 1 million - 5 million shares or higher. They may use Option Puts, e-minis, futures, or spots--whatever they decide for that specific stock trade they have entered and are holding with the intent of having HFTs gap or run the stock upward at market open.
Professionals calculate their risk versus the Run Gain Potential for that individual stock. This provides the Risk vs. Profit gain that can be estimated with a high degree of accuracy.
When you trade any stock, if the stop loss placement makes you nervous, do not tighten the stop loss order price.
Instead, find a lower risk stock with good support very close to your entry price.
They always control and manage their risk. They use the candlestick patterns as support and resistance levels and allow the stock to "breathe" within a range they have determined is a natural price movement up and down within a tight consolidation, which is what the professionals prefer to trade.
Professionals do mitigate risk on huge-lot orders over 1 million - 5 million shares or higher. They may use Option Puts, e-minis, futures, or spots--whatever they decide for that specific stock trade they have entered and are holding with the intent of having HFTs gap or run the stock upward at market open.
Professionals calculate their risk versus the Run Gain Potential for that individual stock. This provides the Risk vs. Profit gain that can be estimated with a high degree of accuracy.
When you trade any stock, if the stop loss placement makes you nervous, do not tighten the stop loss order price.
Instead, find a lower risk stock with good support very close to your entry price.
Martha Stokes, CMT
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Martha Stokes, CMT
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.