Average True Range
238 days ago
Have You Ever Been Stopped Out Too Early?
If you answered yes your probably like many traders who may not be optimizing their stop orders or placing them without regard for volatility. Many of us probably started out thinking about the dollar amount of our trade as our risk. Say you buy 100 shares of Apple Computer, symbol:AAPL, at a price of $100. You would be investing a total of $10,000 dollars in the position but if one looks at that as their total risk, they are essentially saying that they will buy AAPL and sell only if it becomes worthless and goes to zero.
This brings up a couple of issues, but for now understand that successful traders
http://thetradesurfer.com/blog/volatility-based-stop-placement-using-average-true-rangeatr
