STEP 4

STEP 4

NEVER LET A PROFIT TURN INTO A LOSS

remember step #2 "cut the losers with stops"? of course u remember how we talked about using "stops" to make sure that any of our losses remianed small losses.

well now we'll let u in on another secret. u can use stops to protect profits just the same way we talk abotu using them to protect our capital.

let me explain wat we are talking about:

imagine u had bought 1000 shares in a compay for $3.00 each

now imagine that u had set ur stop loss at $2.85 which is equal to a 5% loss. therefore if the shares u bought at $3.00 go down below $2.85 u will get out imediatley

being smart u will have also set ur profit target at 50% which means u r going 2 sell the shares when it gets to 4.50 and get out with a handsome profit

since u bought the shares, the price of the stock has gone up to $4.00 this means u now have an unrealised profit of $1000. not bad! but it also means that u now have ap roblem

should u wait for the shares to go to ur profit target before u sell them?? wat if htey never get to $4.50 and ninstead go down to $2.85 where your stup is?? that would mean u would lose the unrealised profit of $1000 that u currently have and make a small loss on the trade

the answer is to use a difernt type of stop, a ""profit protection stop" to make sure that we never let a profitable trade turn into a loss

THE PROFIT PROTECTION STOP

SO HOW DEOS IT WORK??? altho it might seem comlicated its actualy quite simple

if u take a trade n find that the prices move in ur favour u will start to have an unrealised profit

wat u should do now is to set a limit on the amount of the unrealised profit that u are prepared to lose. this will depend on ur plan and the stocks that u r tradin but we'll use 20% for our example

in other words we never want our unrealised profit to decrease by more than 80% of our unrealise dprofi

lets go back to our earlier example. if our unrealised profit is $100 then what we are saying is that if prices go down such that our unrealised profit is less than $800 we should sell our shares and keep the $800. we dont want 2 hang around 2 find out if the market will turn around and back up to our profit target OR if it will continue 2 go down.

what this means is that every time the stock that u r holding goes up and gives u a greater unrealised profit, then u have to work out what 80% of ur unrealsied profit is and set a new level as 2 where u will get out

as prices continue 2 move in ur favour, the unrealised profit will grow and u have to protect it. TAKE THIS AS SERIOUSLY AS IF IT WER REAL MONEY AND CONTINUE TO APPLY THE PROFIT PROTECTION RULE

when u hold a share u can keep ur stops in one place or raise them but never lower them giving extra slack to a losing trade is a lsoers games. if a trade is not working regarldess of the reason it means its time to get out

using this strategy requires a litle more wokr becasue u have to adjust the stops each day but the results can be well wroth the effort

hello rato lel

hello rato!

hello rato

spam wtf

>setting a stoploss @5%
>setting a stopwin @50%

No, you research, you buy and you hold. If you wanna save wins you sell 50% @100% and trade it into top5 coins with less volatility.

If were talking daytrading its another thing but you need 20k+ to daytrade safely

>selling crypto
>acquiring cuckbucks
>not a loss
?? ? ??? ?

i used this strategy to daytrade from $1k to $8k in 2 months... happy with my results so far

Fuck off faggot I'll sink with my shitcoins

hello rato

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