onsdag den 19. juli 2017

How to use stop-losses to maximise profits

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DAILY BULLETIN
Wednesday 19 July 2017
How to use stop-losses to maximise profits
by David Jones | Trading | 1 mins. to read
Trading
In my opinion, investors/traders don't spend enough time on putting together a strategy that helps them decide when to get out of a profitable position. All of the effort gets channeled into finding a perfect system for where to get in – which of course doesn't exist! But where you finally get out is what dictates your ultimate profit or loss, so let's redress that balance. We will start off with the simplest approach, using previous levels to identify logical places to book profits.

Let's use a trading example to identify the first method. The US Dow Jones index is always a popular one with those who use products such as spread betting for their trading. It's a market that most people have heard of and, even on a dull day, it will travel through ranges in excess of 50 points – and frequently an awful lot more when really moving.

 
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