Why and How to Use the Stop Loss Orders in Ppro8

Why and How to Use the Stop Loss Orders in Ppro8 – Introduction

Every day, thousands of traders in our Trading Office around the world use the Ppro8 platform to analyse securities, open trades, close trades, and manage risks. The platform was developed by our team and has been used for more than 20 years. In this article, I will focus on the important topic of stop loss orders, what they are, their benefits, and what you should consider when placing such an order.

In the marketplace, you can open buy and sell trades on securities at the immediate market place or you can program the chart to open trades at a future time. For example, if a stock of a company is trading at $10 and you believe that a good buy signal will be triggered when the asset moves to $12, you can sit and wait for that to happen. Alternatively, you can tell the trading platform to initiate a trade when the level is reached even when you are not there. In other words, a stop order is an order to open a trade when the price of an asset moves below or above a specific level. A buy stop is an order to buy a security at a price above the current price while a sell stop is an order to sell a security at a price below the current price.

The benefit of using this type of order type is that you don’t need to stay in front of your computer waiting for the signal to happen. Based on your analysis, the Ppro8 will initiate the trade itself. In most cases, the Stop trades are often more profitable than market order trades.

Another type of stop order is an order to automatically end an unprofitable trade once a certain level is reached. When you have a trade open, you can stay and watch it and when the loss reaches a certain point, you can end it. Alternatively, you can set a stop loss order which will stop the trade automatically even when you are not there. This is a good risk management tool.

Finally, there is a trailing stop loss order. This is an ordinary order but with a stop loss that is not at a fixed level. As the trade becomes profitable, the stop loss moves with it. As such, the profit is locked up so that in case of a reversal, the size of the loss is not very high.

To open stop loss orders, you need to do a few things. First, you need to find a security to trade. This should be an asset that you have a good understanding about. Second, you should do your analysis. This analysis should be both technical and fundamental analysis. It will help you identify potential entry and exit positions. Third, you should determine the maximum amount of money you are willing to take. A recommended way to do this is to calculate 2 or 3% of your funds. After doing this, you should place the stop loss at that amount. Finally, you should monitor the trades closely.

Why and How to Use the Stop Loss Orders in Ppro8 – UsefulTips

 

Learn How to Trade, Trade Like a Pro & Make Money with DTTW

With DTTW's Technology, Trading Capital, and Risk-Management system, you can make money in day trading while managing your own business.

Accepted Payment Methods:

Payments accepted from DTTW™

Your ability to open a DTTW trading office or join one of our trading offices is subject to the laws and regulations in force in your jurisdiction. Due to current legal and regulatory requirements, United States citizens or residents are kindly asked to leave this website.

© 1997-2019 Day Trade The World™ All rights reserved.

Day Trade the World™ is a registered trademark of Select Vantage Canada Inc. 

Privacy PolicySitemap.

FEATURED DOWNLOAD:

Business Proposal eBook

  • Monthly profits (P&L) of our best partners
  • Detailed startup costs
  • Detailed ongoing costs
Download now ›
close-link