Stops and Exits

Stops and Exits


Stops and Exits

Learn how to determine the best time to exit a trade by analyzing technical indicators and price patterns.

As much as we wish it weren’t true, there is no such thing as a risk-free investment in the stock market. Sure, some stocks are typically less volatile than others, but none of them is risk-free. So what are you to do as an individual investor to reduce your risk? Answer…use stop losses and position sizing to protect your trades. In this course, we’ll show you how.

In this course, you will learn:

  • How to protect your portfolio using appropriate position sizing
  • How to use technical indicators, like the Parabolic SAR, to establish stop loss levels
  • How to identify potential stop loss levels when analyzing price patterns

Once you have completed this course, you will:

  • Have the confidence to let your winning trades run
  • Know how to protect the trades you are still in

More Information

Difficulty Level:Advanced

Course Syllabus
Stops and Exits

Module 1Staying Consistent – Position Sizing
While technical analysts do everything they can to put the odds in their favor that a trade is going to be successful, there are no guarantees in the market. That's why effectively spreading your risk around through appropriate position sizing is crucial to protecting your portfolio.
Lesson 1Reading: Staying Consistent — Position Sizing 
Lesson 2Video: Position Sizing (16:19) 
Lesson 3Quiz: Position Sizing 
Lesson 4Assignment: Determine Position Sizes Using the ATR Indicator 
Module 2Identifying Stop Levels – Support Levels and Price Patterns
One of the hardest, and typically most emotional, decisions a trader has to make is when to exit a trade that has gone against her. You can make these decisions much easier by identifying support levels – especially those developed by price patterns – ahead of time and setting your stop losses accordingly.
Lesson 1Reading: Identifying Stop Levels — Support Levels and Price Patterns 
Lesson 2Video: Stop Levels – Support and Price Patterns (12:53) 
Lesson 3Quiz: Stop Levels Using Support and Price Patterns 
Lesson 4Assignment: Using Price Patterns to Identify Stop Levels 
Module 3Identifying Stop Levels – Technical Indicators
If you're interested in using a little more precision when setting your stop losses than you can often find by using support levels, you're in luck. You have your choice of a couple technical indicators you can use to set your stops.
Lesson 1Reading: Identifying Stop Levels — Technical Indicators 
Lesson 2Video: Stop Levels – Technical Indicators (12:16) 
Lesson 3Quiz: Stop Levels and Technical Indicators 
Lesson 4Assignment: Use Technical Indicators to Identify Stop Levels 
Module 4Protect Your Trade – Put it All Together
You've learned a lot of different approaches and tactics you can implement to protect your trades in this step. Now, it's time to put everything you've learned together so you can use this information in a disciplined, repeatable, effective manner.
Lesson 1Reading: Protect Your Trade — Putting it All Together