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AuthorDevon Pearsall
All Rights Reserved. Manufactured in the United States of America.
* Without prior written permission of the Publisher, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any way or by any means-electronic, mechanical, photocopying, recording, scanning or otherwise-except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act. Requests for permission or further information should be addressed to Profit Strategies Group, Inc., 255 Shoreline Drive, Suite 100, Redwood City, CA 94065; or call toll-free at (888) 438-6566 or (650) 232-1299; or send a fax to (650) 802-0900; or consult our web site at www.ProfitStrategies.com.
DisclaimerHypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed the results may have under- or overcompensated for the impact, if any, of certain factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There is a risk of loss in all forms of trading.
Important NoticeProfit Strategies is a trademark of Profit Strategies Group, Inc. Profit Strategies is not, and does not act, as an investment advisor or a broker - dealer. Consequently, neither Profit Strategies nor any of our officers, directors, partners, managers, or employees is registered with or qualified as such with any securities authorities or self-regulatory organizations, including the U.S. Securities and Exchange Commission, any state or foreign securities authorities, the National Association of Securities Dealers, Inc. or the New York Stock Exchange. Profit Strategies' services and materials are analytical tools only and under no circumstances should be construed as a solicitation, recommendation, promotion, endorsement, or offer to buy or sell a particular security, mutual fund, transaction or investment.
No representation is being made that the products and services offered for sale by Profit Strategies and/or its affiliates will guarantee profits and prevent trading losses. Trading options, stocks and currencies involves substantial risk and there is always the potential for loss. Because trading results may vary, don't trade with money that you can't afford to lose. Testimonials are non-representative of all students. Certain students trading accounts may have performed worse than the accounts of the students providing the testimonials.Prior to buying or selling an option, your brokerage firm should send you a copy of Characteristics and Risks of Standardized Options. Copies of this document are also available from the Chicago Board of Options Exchange, 400 South La Salle Street, Chicago, IL 60605 or can be viewed at their Web site at www.cboe.com.Keeping
Investing
Systems
Safe! by Devon Pearsall
As a successful trader you must start to incorporate a foundation upon which you will base all of your buying and selling decisions. Over many years, we have had an opportunity to meet and trade with both successful and non-successful traders. What we are about to share with you is what all successful traders practice with their own accounts.
The first part of risk management is to customize your trades around the technical analysis provided by a chart. You must learn to identify areas that you can use as stop-losses and "customize" the trade by trading only the amount of shares (or less) that fits your risk tolerance.
Stop-losses
Dollar stop-losses: Dollar stop-losses are created by using a fixed dollar maximum Highlights in loss amount on every trade. For example, let's say you open a $10,000 trade with a $200 stop. If the position falls in value from $10,000 to $9,800 then you would this report: exercise your stop-loss and close your position. n Four types of stop-lossesn Stocks vs. options Instead of only using a dollar stop, you are going to learn how to tailor a dollar n Determining the number stop around each trade to keep your losses consistent. (It is very important that of contracts to trade you completely read a... [download for more]
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