If you pick a stock or an option to trade... or if you subscribe to any stock or options trade alert service... getting the buy recommendations and actually buying the stock or option is the easy part.
Most people know how to place a trade to buy a stock or an option online…
And, as long as the stock or option keeps going up after you buy it, everything is great…
But the minute the stock or option goes down, you immediately wonder if you should sell or hang on.
Then you watch it, confused about what to do… maybe even seek out some help making a decision and probably end up frustrated with another loss.
I’ve seen many cases where a trader picked the right stock or option and ended up with a loss.
I know this because I consult with many individual traders.
And I know of some excellent trade alert advisories… yet some of the subscribers are not successful.
I just saw a case where one trader made $4,000 on an option trade alert from an advisory service… and another subscriber got the alert, made the same trade… and made nothing.
Here’s the difference…
The difference lies in getting out.
Knowing when and how to get out makes a HUGE difference on any trade.
I’d like to help you get better results right away and you can do it all with just a few clicks in your online trading account…
Here’s a way to get better results starting with your very next trade…
As a rule, whenever you enter a trade using stock or options ALWAYS apply your exit strategy when you enter the trade.
Know your exit before you get in.
This will help you dramatically because it takes ALL the emotion and confusion and wonder out of when to get out of a trade.
Plus it’s easy…
With the new online brokers these days, you can enter your order to buy the stock or option and apply your exit strategy with just a few clicks on the same order ticket.
Here’s an example…
Let’s say you want to buy XYZ.
And XYZ is $25 per share.
You go online to your broker and enter the order to buy it.
Your order is to buy however many shares you want to buy of XYZ “at the market.”
Adding to the order you will place two (2) sell limit orders.
One of these sell orders will be at a limit price above 25… and one will be at a price below 25.
This way if XYZ goes up in price you will automatically lock in a profit…
And if XYZ goes down in price you will automatically cut your loss.
This next part is critical: With these 2 sell orders you want to make sure that they are entered on an OCO basis. OCO means One-Cancels-Other.
This means that if XYZ goes up and you lock in a profit at a higher price, the order to sell at a lower price will automatically be cancelled.
If XYZ goes down and hits your stop loss order… the order to sell XYZ at a higher price will automatically be cancelled.
This gives you freedom from having to worry about getting out of any trade.
If you like this kind of stuff then you will love this book...