How are stops adjusted?
At times, we will adjust the stops to lock in profit or to reduce risk. Many times we will move the stop to reduce risk, and enter a new stop order to reverse our position at that same price point. When we reverse position, as always, we do so with bracket orders. Our typical stop management would be that when price gets to 80% of target, we will begin reducing risk. When we get to 90% of target, we will look to lock in a few ticks by moving our stops. At 95%, we typically will lock in 75% of our profit potential again, by moving our stops. This is a basic guideline and not a set-in-stone rule. 10% of trading is art, and exiting out of a trade is probably the most artful side to trading that there is. We will talk you through these situations as they happen.
