I however will comment on stops, because, well, I am me…..I don’t use hard stops, never have, never will – but I get why traders use them. However, many traders ignore the market and only set their stops based on the technical set-up of the stock. When you are in a choppy market your stops will get triggered far more often only to see the stock bounce back. The choppier the market the wider those stops will be – stocks will test and even break through levels of S/R specifically to trigger those stops and then head back to where they were. So please take the market into account.
September 22, 2022