using stops for the dow

sdgadd

Junior member
14 0
I have been trading the DOW with stops of 50 pts then when in credit move stops to near entry price useally 20 pts but then I regulary get stopped out.. Then watch as the dow goes in my favour which is frustrating.
 

tradesmart

Experienced member
1,286 22
You obviously know by now that the Dow is a volatile beast and entry/exit points are critical. Refer to ChartMan’s daily Dow Intraday Charts threads to tune up your entry/exit strategy. Taking entries where RSI divergence coincides with prior strong support/resistance levels works well, but there are plenty of other options.

I’d use a 20 point stop max as it can run against you very quickly. If you enter a trade and see a profit, but it suddenly reverses, pull the trade at breakeven; don’t hang on and wait/hope for a bounce in your favour. This will save you a lot of money.

Small controlled losses are part of trading and can easily be made up in successful trades with the correct strategy.

Good Luck
 

josbarr

Active member
214 2
If you are not already, I'd suggest placing stops on odd numbers as well as looking at previous day's hi/low and daily pivots.
 
 
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