HOW TO EXIT A POSITION ? SELL !

Exiting Positions: 2. Percent swing approximation - calculated 3. Channel assumption 4. How much can you afford to lose 1. Percent swing “norms” – 6% or 10% 5. Trailing stops 6. Daily or 15 minute charts But first –sometimes pay attention to s….

Oct 26 6 cents 51 cents CPMCF 30d/30m Nov 1

Stock buy at 300 Trail stop set at 3.00 TRAIL STOPS

TRAIL STOPS

TRAIL STOPS

TRAIL STOPS

TRAIL STOPS

TRAIL STOPS

TRIP Kept 5.52 = 1.84% = 2.84% TRAIL STOPS

(1.23) Max loss 3 Months/d FRIDAY 29th Maybe 10am…. SNDK Set stop At

(.12) 10 Days 10 Days/15m Noon SNDK NOTE: Could have Set stop at (.34)

(.15) 5 Days/5m 12:15pm mo channel

(.60) 30d / 30m EOD Friday SNDK Could have stopped out At and lost

OOPS !!

=10% Profit targets: 1.Finite [$100] 2.Channel [$41.00] 3.3% or 6% [38.20/39.34]

Limit Orders To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. When you place a market order, you can't control the price at which your order will be filled.market order For example, if you want to buy the stock of a "hot" IPO that was initially offered at $9, but don't want to end up paying more than $20 for the stock, you can place a limit order to buy the stock at any price up to $20. By entering a limit order rather than a market order, you will not be caught buying the stock at $90 and then suffering immediate losses if the stock drops later in the day or the weeks ahead. Remember that your limit order may never be executed because the market price may quickly surpass your limit before your order can be filled. But by using a limit order you also protect yourself from buying the stock at too high a price. Some firms may charge you more for executing a limit order than a market order.market order

Stop Order A stop order is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the specified price is reached, your stop order becomes a market order.market order Buy Stop Order — Investors typically use a stop order when buying stock to limit a loss or protect a profit on short sales. The order is entered at a stop price that is always above the current market price.short sales Sell Stop Order — A sell stop order helps investors to avoid further losses or to protect a profit that exists if a stock price continues to drop. A stop order to sell is always placed below the current market price. The advantage of a stop order is you don't have to monitor how a stock is performing on a daily basis. The disadvantage is that the stop price could be activated by a short-term fluctuation in a stock's price. Also, once your stop price is reached, your stop order becomes a market order and the price you receive may be much different from the stop price, especially in a fast-moving market where stock prices can change rapidly. An investor can avoid the risk of a stop order not guaranteeing a specific price by placing a stop-limit order.stop-limit order Stop-Limit Order A stop-limit order is an order to buy or sell a stock that combines the features of a stop order and a limit order. Once the stop price is reached, the stop-limit order becomes a limit order to buy or to sell at a specified price.stop orderlimit order The benefit of a stop-limit order is that the investor can control the price at which the trade will get executed. But, as with all limit orders, a stop-limit order may never get filled if the stock's price never reaches the specified limit price. This may happen especially in fast- moving markets where prices fluctuate wildly.

STOP-LIMIT; For Potentially Upward Moving Stock Let’s say: 1. You are using trend lines and candle patterns 2. You are a swing trader, that is, at least not an intra-day trader. 3. You have between $3,000 and $25,000 in your account, so you have limited day trades. 4. Therefore you are looking to place a trade late in the day, at say 2:45pm, for the next day. 5. So that if necessary you could cancel your trade Wednesday without using a “day trade.” 6. One of the next issues you will face is where do you enter the trade? a b c e d a = high Tuesday21.00 b = close Monday20.00 c = low Monday18.00 d = close Tues, aprx 2:45pm [Where you are]17.00 e = open Tuesday15.50 This is where the “Trader’s” [your] judgment comes in. Some of us would decide that setting the trade at where you are, at the 2:45 pm level-is okay, and it’s also the easiest to set. Depending on past experience, or looking back at the charts for this stock, or any other means that gives you a clue as the where the next day might open, YOU decide where you want to enter on Wednesday, with the idea of maximizing profit. If you decide to make your trade at somewhere HIGHER than where you are a 2:45, you can use a stop-limit trade. A stop-limit trade means that you would buy a stop at higher than the 2:45 price, and a limit even slightly higher. The trade will execute between those 2 values. So let’s say you have divined that you want to open at above Monday’s low because that’s where you think Wednesday will open. A stop-limit might look like: Stop = Above Monday’s low of 18.00, let’s say a buy set to Limit = At or very near Monday’s close of 20.00, let say set at Your open Wednesday will execute only if the stock is higher than and less than If the stock opens at 19.15, it will not execute on opening. If the stock opens at 18.75, it will not execute on opening. The trade will only execute when it gets to between and

Better explanation ? Stop orders and limit orders are two different types of orders. Hopefully the following example will clarify. I am using a buy order. Just reverse if it were a sell. Limit order: Your limit price is typically placed "below" the current market price. If the stock price drops to that price it will sell, but only at or below your limit. Stop order: The stop is placed "above" the current ask price. If the stock increases in price, when it passes the stop price, your order becomes a market order. Stop limit order: The stop is placed above the ask as with a stop order. You also place a "limit" so that your order will become a limit buy order instead of a market buy order. The essential difference is that with a stop buy, you are trying to buy the stock on an uptrend. With a limit order, you want to limit the maximum price you pay. Stop limit just combines those two goals.

A trailing stop limit order is designed to allow an investor to specify a limit on the maximum possible loss, without setting a limit on the maximum possible gain. A SELL trailing stop limit moves with the market price, and continually recalculates the stop trigger price at a fixed amount below the market price, based on the user-defined "trailing" amount. The limit order price is also continually recalculated based on the limit offset. As the market price rises, both the stop price and the limit price rise by the trail amount and limit offset respectively, but if the stock price falls, the stop price remains unchanged, and when the stop price is hit a limit order is submitted at the last calculated limit price. A "Buy" trailing stop limit order is the mirror image of a sell trailing stop limit, and is generally used in falling markets.