Page 38 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 38

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If you find yourself WISHING for a stock to turn around, you’re not

trading well. Based on the reasons you entered the trade and the
location of your stop, you should always know in a second whether you

should be in or out of a trade.

Setting Mental Stops

For some markets it is better not to put the stop actually in the market
when you have the position on. Some market makers will see your stop,
and if there are enough other traders with similar stops, the market
makers may try and hit your stop. Then they make money and you do
not. In markets like this, you can set a MENTAL STOP and get out
immediately if it is hit. Be sure you have the psychological toughness to
get out when you are supposed to. If you don’t, then go ahead and enter
the stop when you take the trade.

Moving Stops

Never move your stop for emotional reasons, especially when it is your
“Initial Stop”. As new “Trailing Stops” are determined, you can move
your stops based on newly confirmed “Pyramid Trading Points®”
and/or ART® “Reversals”. If you add on to your winning trade
(increase your “Trade Size”), your stop must be adjusted to keep your
risk in relation to your new “Trade Size”.

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