Part-I:
http://perfectew.blogspot.com/2012/06/where-to-place-stop-order.html
From tang1688 - Hi Snow laoda !! I knew you bought SPY,FAS,,,, today at market closed price , would you tell me where is STOP point please ?! Thank you.
That is really a Hundred Million Dollar Question because everyone has her own answer. The basic rules are as the following:
1.
You need to know WHY you enter a position (e.g., you see the profit target at where?)
2.
Then you need to know when to give up your assumption in above rule #1. In other words, you need to know in what market situation that your position is a mistake one.
偶一直覺得倒限單的位置因人而異 並且迷信地覺得那是個
見光死的東西 就是萬一說出來市場主力就會過來把它吃掉 除非偶已經不在乎某一個倉位了(e.g., TLT) 那偶就會無所謂地說出來 (e.g., TLT 06/20's low)
言歸正傳 ... 這SPY到底要守哪裡? 偶們做一個trade必定有2個東西: 期待值 及 風險值 The rule of thumb is
期待利潤 >= 承受風險 (至少等值或者2倍3倍4倍5倍...)
tang1688 - Based on the rule above and the wave count of this week, we can make the following bets if we entered last Friday (SPY @ 135.49):
1. 倒限單守 134.85 以下 -> 獲利點至少在 136.13 以上 (135.49+135.49-134.85=136.13)
2. 倒限單守 132.79 以下 -> 獲利點至少在 138.19 以上 (135.49+135.49-132.79=138.19)
3. 倒限單守 131.28 以下 -> 獲利點至少在 139.70 以上 (135.49+135.49-131.28=139.70)
4. 倒限單守 130.85 以下 -> 獲利點至少在 140.13 以上 (135.49+135.49-130.85=140.13)
...
Then you know where to place the stop order to make the trade reasonable.
