|
|
Suggested Stop-Loss.
In situations where the market does not move in our
favor, we can prevent substantial losses by the use of stop losses.
We will close out a position and take a loss when a trade was
initiated in accordance with our signal but the value of the option
decreased rather than increased, reaching our "Suggested Stop-Loss
Level".
Typically, stop-losses are issued to protect a gain or to limit a
loss. We may have to cut our losses when our options are close to
the expiration and showing a loss. On the other hand, if we are
currently in a winning position and do not yet wish to close it out,
we may choose to issue a stop-loss in order to protect our gains.
We may use "Suggested Stop Price" in several ways:
-
Provide "Suggested Stop-Loss Levels" at the same time that we issue
a signal (in most cases);
- Issue
a "Suggested Stop-Loss Level" at a later time, once an option
position has already been taken;
-
Provide a new "Suggested Stop-Loss Level", replacing the one
previously issued;
- Not
issue a "Suggested Stop-Loss Level" at all (in very rare cases).
If our stop-loss is hit, we will close out the position at the
stop-loss price.
For Instant Access,
Sign up Now!
Just one winning trade
could pay for your membership for years to come!
|
|
|
 |
|
 |
|
 |
|
|
|
"Options Trading Systems" |
|
|
