Where to place stops

[Rick Merritt]

I am trading ProShares (bear & bull )2X ETF's using 3 to 5% Trailing stops. I am getting whipsawed quit a bit. What is the best way and place to set stops in this crazy market on 2X and 3X ETF's.
Thanks,
Rick

 

[new_trader]

I am trading ProShares (bear & bull )2X ETF's using 3 to 5% Trailing stops. I am getting whipsawed quit a bit. What is the best way and place to set stops in this crazy market on 2X and 3X ETF's.
Thanks,
Rick

You are not ready to trade if you are using expressions like "whipsawed" and "crazy market".

You should make it your mission to learn 3 things:

1) Exactly when to go long, not earlier or later
2) Exactly when to go short, not earlier or later
3) When you should not do any of the above.

When you begin to understand that STOPS are a function of proficiency the question of where you should place them will become irrelevant.

Good Luck :clover:

 

[ginogerard]

The stop should be placed where you think the market should not go(one price is there its a sign strong enough that your position is wrong).In other words when price reaches a certain level what is saying to you price should not be there according to the position you are in.That moment don´t doubt and get out.
Preserve your trading capital should be the first goal of your trading.

 

[Rick Merritt]

Thanks

You are not ready to trade if you are using expressions like "whipsawed" and "crazy market".

You should make it your mission to learn 3 things:

1) Exactly when to go long, not earlier or later
2) Exactly when to go short, not earlier or later
3) When you should not do any of the above.

When you begin to understand that STOPS are a function of proficiency the question of where you should place them will become irrelevant.

Good Luck :clover:

Thanks for the advice. I will try to study more before I make a trade. Thanks

 

[Rick Merritt]

The stop should be placed where you think the market should not go(one price is there its a sign strong enough that your position is wrong).In other words when price reaches a certain level what is saying to you price should not be there according to the position you are in.That moment don´t doubt and get out.
Preserve your trading capital should be the first goal of your trading.

Thanks for the advice. I will try to study more before I make a trade. Thanks