{"id":47280,"date":"2018-07-28T17:54:49","date_gmt":"2018-07-28T21:54:49","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=47280"},"modified":"2018-07-28T17:54:49","modified_gmt":"2018-07-28T21:54:49","slug":"stop-losses-for-stock-riches","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/stop-losses-for-stock-riches","title":{"rendered":"Stop losses for stock riches"},"content":{"rendered":"

\"\"<\/p>\n

There is one thing you have to get right at the start, developing stage, and apex of your trading career. \u00a0Some think getting this one thing right it is optional. \u00a0There is other work waiting for them. \u00a0Others fight its necessity to the frustration of those who run trading firms. \u00a0Those traders either get onboard or are transitioned out. \u00a0Still others embrace it is essential. \u00a0These traders learn their trading potential.<\/p>\n

If you cannot solve this trading issue, then you will need to look for new work, as I explain in this video.<\/a><\/p>\n

The most common question I am asked during a trading presention is how to fix their failure to adhere to trading stops. \u00a0This was the first question I fielded during a presentation at the Chicago TradersExpo this week. \u00a0I offer some solutions in this video<\/a>.<\/p>\n

New traders at our firm immediately meet our risk manager if they exceed their stop losses. \u00a0He even walks the floor checking in on the newbs and their stops. \u00a0Traders grow from a start of honoring stop losses.<\/p>\n

Developing traders meet the risk manager if they exceed their stop losses. \u00a0As they get bigger, traders grow honoring stop losses. \u00a0It is more common for firm coaches to push traders to take on more risk than field meetings about exceeding risk.<\/p>\n

You are not scalable if you do not trade within stop losses (we also say guardrails). \u00a0You are susceptible to blow up without trading within guardrails. \u00a0Think KBIO. \u00a0Think DRYS. \u00a0Think VRX. \u00a0Think AWX.<\/p>\n

Some firms view stop losses exceeded as an ethical lapse by the trader. \u00a0 It can be seen as black and white as a trader stealing from the firm. \u00a0In a closed door meeting, with trading management, a spirited trader we work with judged such behavior as \u201ccriminal\u201d. These traders do not have the authority to lose more than their stop loss on a trade. \u00a0Additional losses are not much different than breaking into the firm safe and looting its cash reserves.<\/p>\n

The work on adhering to stop losses continues for even the winning traders.\u00a0One large trader, with whom I work, noticed outsized losses midday after successive losses. \u00a0He added a technique to limit these losses propelling improved trading for an already successful trader.<\/p>\n

Another Black Shirt trader, at our firm, has made excellent progress in 2018 losing less on the front side by setting stricter stop losses. \u00a0One international experienced trader is working on stricter stops for overnight positions. \u00a0Another experienced trader for after hours trades. \u00a0The work continues. \u00a0The need for stop losses endures.<\/p>\n

*no relevant positions<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

There is one thing you have to get right at the start, developing stage, and apex of your trading career. \u00a0Some think getting this one thing right it is optional. \u00a0There is other work waiting for them. \u00a0Others fight its necessity to the frustration of those who run trading firms. \u00a0Those traders either get onboard or are transitioned out. \u00a0Still … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":46790,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3744],"tags":[5485,5486,5484],"class_list":["post-47280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ask-bella","tag-stop-losses","tag-trading-blow-up","tag-trading-stops"],"yoast_head":"\nStop losses for stock riches | 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\/stop-losses-for-stock-riches\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stop losses for stock riches | SMB Training\" \/>\n<meta property=\"og:description\" content=\"There is one thing you have to get right at the start, developing stage, and apex of your trading career. \u00a0Some think getting this one thing right it is optional. \u00a0There is other work waiting for them. \u00a0Others fight its necessity to the frustration of those who run trading firms. \u00a0Those traders either get onboard or are transitioned out. \u00a0Still ... 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