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dear chris

I trade on scottrade but other discount brokers allow the same thing now. Its called a trailing stop loss. or called Trailing stop on scottrade's platform that I USE. Basically a trailing stop loss works better because less say I place a stop loss on LLY. Lily it goes up 7 pts one day. I was at work didn't check my stock when I got off. Bad mouse. I was smart enough however to lock in profits with A trailing stop loss. Because I set the trailing stop loss to trail by one dollar that price falls from 7pts to 6pts I locked in five dollars profit. but now the stock jumps after falling a dollar another two points that equals another two dollars profit. I lost that profit because the stop loss timed in. So set the loss according to can I number one afford a one dollar loss to make room for a three dollar gain. because had I set the trailing stop loss at 2pts. I would of still made the orignal 6pts profit. taken the two point fall. then gained the three for a profit of 7-2=5=3 pts=8 pts. so I ended up 8pts ahead and still in the game because I still own the stock and the I can market out if the profit is high enough are ride it like a smart fool and set another trailing stop for how many dollars i can afford to lose verses a up swing . That how a better stop loss works called a trailing stop loss. I would never use the normal one. Too much profit loss that way.
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