{"id":13765,"date":"2011-08-10T08:50:45","date_gmt":"2011-08-10T12:50:45","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=13765"},"modified":"2011-08-10T08:50:45","modified_gmt":"2011-08-10T12:50:45","slug":"a-better-stop","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/a-better-stop","title":{"rendered":"A better stop"},"content":{"rendered":"<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/08\/stopped-out.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-13766\" title=\"stopped out\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/08\/stopped-out.png\" alt=\"\" width=\"629\" height=\"485\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/08\/stopped-out.png 629w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/08\/stopped-out-300x231.png 300w\" sizes=\"auto, (max-width: 629px) 100vw, 629px\" \/><\/a><\/p>\n<p>A frustrated new trader stepped into my office to discuss a few specific trades from yesterday.  He got wicked out of a good short in CVC and a few longs in C into the close.  He was looking for some guidance.<\/p>\n<p>First there were a lot of things this new trader did well.  He was in the right stocks.  He was trading with the direction of the market.  He was controlling his risk.  He was on the right side of the stocks.  He had really just one issue to fix, which was a better stop.  And this is not a big problem to fix.<\/p>\n<p>The market&#8217;s volatility is unusually high. This means you need to adjust your stops.  You need to give them a little more room.  Also you can give them more room responsibility because your gains will be larger than normal due to the increased movement.  Further for a market that is very weak or a stock that is very weak you can give your stops a little more room.  Again your reward will be greater if you are on the right side so this allows for a bigger stop.<\/p>\n<p>The new trader was short 64c in CVC with a stop at 66c.  When I love a position or the market is more volatile I will adjust my stop to something like, if CVC is holding the bid above 70c or ticks 76c.  I concentrate more on the stock holding clearly above the resistance level before I cover.  This is the better stop.<\/p>\n<p>Bella<br \/>\n<a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-Proprietary\/dp\/0470529407\/ref=cm_cr_pr_product_top\">One Good Trade<\/a><br \/>\n<a href=\"http:\/\/twitter.com\/smbcapital\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A frustrated new trader stepped into my office to discuss a few specific trades from yesterday. He got wicked out of a good short in CVC and a few longs in C into the close. He was looking for some guidance. First there were a lot of things this new trader did well. He was in the right stocks. He &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/a-better-stop\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[1879,1828,1880,1881,1193,653],"class_list":["post-13765","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-a-better-stop","tag-smbu","tag-stock-stops","tag-the-right-stop","tag-trader-education","tag-trader-training","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A better stop | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/a-better-stop\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A better stop | SMB Training\" \/>\n<meta property=\"og:description\" content=\"A frustrated new trader stepped into my office to discuss a few specific trades from yesterday. He got wicked out of a good short in CVC and a few longs in C into the close. He was looking for some guidance. First there were a lot of things this new trader did well. He was in the right stocks. He ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/a-better-stop\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-08-10T12:50:45+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/08\/stopped-out.png\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" 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