| In this video, Chris from Opivo Trading discusses | | | | you. |
| stock risk management - the importance of having a | | | | He uses the example of Washington Mutual. In the |
| plan when you trade. Getting into positions without a | | | | past this stock has been sold to investors as a |
| plan and purpose is a scenario for losing. When | | | | guaranteed, safe investment. If you intend to buy |
| trading, follow a plan which clearly defines entry and | | | | into it, you need to know what your purpose is in |
| exit points. | | | | getting into WAMU. Is it to ride the stock to a new |
| Unfortunately a number of people get involved in the | | | | level? In this case, you develop a plan, a price you |
| markets without a purpose, and no plan to handle | | | | want to buy above when you see shares trading |
| risk. They buy stocks based on hope or for | | | | higher - a trigger that tells you WAMU is going higher. |
| excitement, often getting in near the top, letting | | | | If it then goes below that trendline, it broke your |
| stock run down, feeling they can't sell for a loss, and | | | | deal, triggering you to get out. |
| waiting for it to come back and break even. | | | | That's where having set a stop loss in advance is |
| Chris emphasizes that jumping into a stock for | | | | important - in order to manage risk, you need to |
| emotional reasons, without a plan, is dangerous - | | | | know at what point you need to get out if your |
| trading in this way can be detrimental to your | | | | trade goes against you. |
| financial health and open you up to a world of trouble. | | | | Another risk management principle Chris discusses is |
| He advises, be careful with your money and treat it | | | | that you have to watch your emotions. You can't let |
| with respect, or it will disappear. That's what happens | | | | them get in the way of your trading, which must be |
| over and over with so many who put their money in | | | | based solely on the business and on the charts. |
| the markets, investing without a plan and no clear | | | | To summarize, it's important to have a specific plan |
| investment purpose. This is why it can be a benefit | | | | before buying stock or options - a purpose of entry. |
| to sign up with a service like Opivo Trading, to follow | | | | You know the direction you want the stock to go in |
| along with a group of traders that have a clearly | | | | and get in once your entry price is triggered. Be |
| defined plan for every move that they make. | | | | careful not to trade on emotions - if the stock |
| When trading, you need a profit purpose - a deal, an | | | | breaks the deal, you just get out immediately and |
| expected result that you hope for. He also | | | | move on to the next setup. There's always a |
| emphasizes the importance of having a clear exit | | | | home-run opportunity just around the corner. |
| point of where you need to get out if it goes against | | | | |