Hubert Senters here.
One of the common questions I get is what is the best stop-Loss to use on each individual to trade? It’s hard to answer it individually because everybody has a little bit different risk profile. I may be willing to risk $20,000 on a trade or $2,000 or $2 million. Maybe you only want to risk $20,000 or $200. See what I mean? So it’s a difference in the risk profile.
Now, the best indicator that I’ve ever seen is Mark’s proprietary Intel a step indicator and he builds that into a lot of his different advance indicators or his program trading. So that’s a little purple thing and it works similar to a parabolic SLR but it’s doing Average True Range instead. And it’s his own proprietary blend.
If you can’t come up with something like that on your own or if you don’t want to buy one of his special high in proprietary indicators. Use a parabolic SLR so let me grab this chart. So in this case I’ve just got a 60 minute chart of Netflix and insert analysis technique.
Now, it’s used for entry or reverse and stop so it’s always in. I don’t really use it that way. I don’t use a lot of stuff the same way it’s meant to use. But how I use it is just for a trailing stop mechanism. I don’t use it for an entry. I use myself for entries so parabolic SLR. Okay .That will make the dots big so you can see them.
I’m making really big so you can see them. That’s way too big. I got a little too aggressive there. Okay. There we go. So on this example, we if we were currently short Netflix at $342 on a 60 minute chart the stop-would be it for up to, that’s a pretty stout.
I mean that’s $43 point. It’s a $60 point stop-loss. I don’t think I can handle that. Maybe you could but I can’t. So what you do is you just dial it down into something you can handle 5 minute. Here we go. If you were to short Netflix at $342 the trailing stop-loss would be $352. That’s not too bad on Netflix, $10 point stop on something that’s trading at $343. That’s doable. So use a parabolic SLR get the training on some of it. If you can’t afford Mark’s Intel a step indicator that’s included in a lot of advanced indicators.
Like I said Mark is going to be doing a new webinar on ‘’The New 3 Light Options Strategy’’ and it has a really cool story behind it and you’re going to want to hear that. So that webinar is going to be Wednesday July 25th at 8PM EST. Click CLAIM MY SPOT NOW to register for the webinar.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
