A stop-loss order is a type of order that traders use to cap their losses or lock in a profit on an existing position. By using stop-loss orders, traders can limit the amount of risk they are exposed to. Stop-loss orders are instructions to exit a trade by purchasing or selling a security at market value when it hits the stop price. Bear in mind that stop-loss orders only get triggered during regular market hours. If price drops below a certain level during extended market hours (premarket or post market) the stop will not get triggered. In other words, stop loss orders do not remove the risks associated with holding positions overnight.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr