"Let your profits grow and cut your losses" is the most important rule of the professional trader. Trading strategy is not only about buying, it's also about selling. If you don't have an exit strategy then you don't have a trading strategy at all. And knowing when to exit a trade is the key to protecting your invesments. That's what Sell@Market is all about.
Sell@Market is an online stock monitoring service that helps you protect your trading gains and cut your losses. The service sets a series of trailing stop prices based on the risk profile of each stock and alerts you when any of these prices has been reached.
Sell@Market monitors your stocks in real-time and recalculates the trailing stop prices. If the stop price has been reached for any of your stocks, the service sends you an email notification. It's as easy as that!
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The "Limit your losses and protect your gains" rule is the major rule of thumb for any self-respecting businessman. Ignoring it, just as gambling, is a straight way to bankruptcy. Stock market investors know that one of the mechanisms that helps adhere by this rule is the Trailing Stop. The Trailing Stop method allows investors to set a limit on the maximum possible loss without setting a limit on the maximum possible gain, and does not require constant monitoring of their investment.
If you do not have a clear exit strategy, then you have no trade
strategy at all. Trailing Stop should probably be the exit strategy
to top the investors list of rules. All that would be great, if
Trailing Stop hadn't had one flaw: the choice of the optimal
percentage, which does not allow to efficiently use Trailing Stop
in practice. A -25% percentage on one stock can be a normal state
of things and be a disaster on another one. The Adaptive Trailing Stop,
which underlies the Sell@Market service, solves that problem. Let's
drill down into details to see how it really works...
Read more...
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