Stop Loss And Profit Target Explained - Here’s why you should use it when trading

[@kronicobx6045]

thank you !! brother i been trying to understand this concept as a new trader this was really important for me to grasp, you made it to understand subscribed !

[@rockwelltradingservices]

Thank you! :)

[@rogeliobarraza1772]

Wow man. You’re highly underrated as far as explaining stocks! Keep it so simple thank you!

[@rockwelltradingservices]

Hi Rogelio. Thanks for watching. And thanks for your feedback. Much appreciated. Feel free to share this video, and I'll "see you" in the next video 👍

[@cryptohustler6418]

Thank you sir. I can see the light now.

[@rockwelltradingservices]

Hi HouseonHill, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@amandaglasscock9328]

Thank you ! Great lesson; simple and concise.

[@rockwelltradingservices]

I am glad that you like it!

[@MakereSH]

Great, thank you very much! Question: If you were going to represent the stop or profit loss as percentages, are you recommending say 10% ?

[@rockwelltradingservices]

I prefer volatility based exits instead of % exits. This is why I love using the Average Daily Range. But if I were arbitrarily using 10% as a stop loss I could calculate how many shares to trade based on the stop and value of the stock. Example = $100 stock with a 10% stop = $10 risked per share. If I'm trading a $10,000 account and trying to risk 2% or $200 a trade, I would trade 20 shares ($200/$10 = 20)

[@kathymichael6499]

I'm still not sure what percentage stop to put, and do you use a trailing stop loss?

[@rockwelltradingservices]

Yes.

[@Benanca17]

Thank you! Good lesson

[@rockwelltradingservices]

You are welcome! :)

[@Benanca17]

👍👍👍

[@GOjoe1970]

What do you use for your preferred Average Daily Range?

[@rockwelltradingservices]

(Daily High - Daily Low)/7 Does this help?