Page 39 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 39

________________________________________________________________________

When adjusting your stop due to an increase in “Trade Size”, always

adjust the stop closer to your current position to lower the risk in
relation to your larger “Trade Size”. Once you do this, you should
never roll back your stop since now your larger “Trade Size” will

warrant the tighter stop to maintain proper risk control.

Many traders ask about moving stops based on different time frames.
This is an “Advanced Technique” (see red-tab chapter at the back of
this “Study Manual”). As a general rule, always set your stops on the
same time frame as you entered the trade. In other words, if you use a
daily chart to base your trade entry, use the daily chart to set your
initial stop.

There are exceptions to this, but only after you have developed enough
experience. Become profitable using the same time frame first, then
perhaps venture into multiple time frames later.

With the ART® trading system, stops are set based on the REALITIES
of the market and should only be moved when the ART® “Charting
Software” designates new stop-loss exits.

________________________________________________________________________________________________

Copyright © 2012 TradersCoach.com, Inc. All rights reserved. Any reproduction and/or electronic
transmission of this document is prohibited without the prior written consent of TradersCoach.com

and is a violation of international copyright law. AR-1021-04-06.