One thing I really want to make sure that you understand is never adjust your stop-loss so that you can size it correctly for the trade.

Stop-loss should always be based on the technical level on the chart itself.

Okay, so let’s say you decide, “Okay, on the chart this is my entry price, and my stop-loss is at a level where it is being protected by some kind of support above,” right?

So you don’t want to move your stock closer so that you can actually size your trade to get bigger number of shares to short in order to meet the minimum lot size for your futures mechanism.

So if under that scenario, if let’s say this is my stop-loss and after sizing the trade, the minimum lot size doesn’t allow me to get into the trade, my suggestion to you is don’t get into that trade. Okay?

If all things else remains as what I’ve mentioned earlier on, then don’t get into the trade. Look for some other trades.

 

Interested to receive mentorship opportunities like this with Philip?

Find out more at traderwave.com/innercircle

Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

Ready to Trade Profitably?

Get our latest updates and trading ideas in your inbox