How to profit from a trade
First and foremost! PROTECT YOUR INVESTMENT WITH A STOP LOSS!
If you placed an order with your broker which was filled. Your immediate next step is to PROTECT YOUR NEW INVESTMENT with a STOP LOSS.
Day Trading privileges do not apply to enter a ‘Stop Loss’ order.
If you are qualified as a “Day Trader” you can immediately place a SELL order for profit.
If you do NOT have ‘Day Trading’ privileges simply place the SELL order the following trading day.
Immediately order a sell to close the investment by calculating the amount with this straightforward calculation. Multiply the ‘Filled’ price for the stock by the target stock increase percentage as included within our data, it usually between 7.5% and 12.0%, on average it usually is about 10%.
When you place your order you must declare if it “GOOD FOR A DAY” or “GOOD FOR 60 DAYS”.
Select GOOD FOR 60 DAYS” with the “LIMIT PRICE” that you calculated for your profit.
With these two orders your broker will do the rest. Then it is time to enjoy life.
After the order is ‘FILLED’ by your broker you will know how much the Stock price was filled at.
Our detail will show, the GAIN and the STOP LOSS percentages . For both ‘Stocks’ and ‘Stock Options’
FOR STOCKS.
To calculate the STOP LOSS simply multiply the percent within the detail by the filled price, then subtract the result from the amount you paid for the stock. This will be your Stock Loss for the ‘STOCK’
FOR OPTIONS.
It is the same procedure as for STOCKS, except you will use the filled option price provided by your broker.
Note: Understand your loss tolerance! If the percent stop loss within the data provided as per our calculation is too high feel free to use any percentage your tolerance is comfortable with.
You can order a ‘TRAILING STOP LOSS”. The procedure is NOT the same for all brokers, check with your broker for their procedure.
Trailing Stop Loss can be difficult to understand. You need to understand how a Trailing Stop Loss works, your broker has the details, check with them.