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Using Trailing or Regular Stop Losses

February 24th, 2009

Use trailing stop losses by the percentages you are willing to lose for a stock.  The general rule is to have a stop loss that is about 1/3rd of the amount of profit that you are expected.  So if you think USB, for example is going to $14 and you buy at $11, then you would set your stop loss at $10 or a trailing stop of $1.  The trailing stop loss would trigger if your stock pulls back at least $1 off the high of any one trading day.  Use the intraday charts to choose your buy or sell point to maximize your profits and reduce your risk.

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