Track 'n Trade Bulls 'n Bears Trading System
Trade Demonstration: Re-Entering a Market After Being Stopped Out
In this Track 'n Trade Trading Training video, I want to talk to you about how to get back into the market on a market that we've been stopped out of- or possibly add on a position to our market.
Let's go ahead and get into the market, let's step the market forward, wait until we get our Buy Signal. Let's place our order, and we're going to place that just above the High. We're going to Buy, let's go ahead and Buy 75 Shares, hit Confirm. We're going to move this market forward. This time what we're going to do is we're going to come in and we're going to say I want to Sell based on the Blue Light System. We're going to Confirm that on a Trailing Stop. We're just going to trail this market right up until we get stopped out.
We're going to make some good money, here. But we're going to get out of the market on this reversal. Now we're out of the market. But look at what the market is doing, it's still kind of continuing higher. Of course, now we've gone from green to yellow, which is a neutral position. Look, we've gone back to green, once again. That's a Buy Signal, a yellow followed by a green.
Look at this, this is an Ugly Buy Signal. It closed lower than it opened. It closed lower than yesterday's close. That's a Bearish Buy Signal. We don't like that Buy Signal, in fact, it even looks like it's an Inside Day. An Inside Day Buy Signal is one where the high and the low are on the inside of the previous Price Bars high and low. These are considered non event days. It was, you know, the high of the day did not break out of the high of yesterday and the low of the day did not break out of the low of yesterday. So, really, nothing happened. Those are non event days.
Nonetheless, it is a Buy Signal. Yellow followed by a green. Now, we don't want to just jump in with a market order on a Bearish Buy Signal. That would be unwise, because that's got downside potential. But because it is a Buy Signal, yellow followed by a green, we can take advantage of the possibility that it might rise, by using a Stop Order.
We'll go ahead and we're going to place this Stop order to buy, maybe this time, we're going to buy 50 shares, on a rise. This is how we would get back into the market, once we get stopped out, we're going to go ahead and confirm that. Step the market forward, and we're now back in the market. Where do we put our Stop to protect ourselves? Once again, we come in and we go behind the previous Price Bar, or behind the yellow. Whichever we prefer. Or we could break it apart. I could say we'll put 25 behind here, go ahead and Confirm that one. I'm in long with 50, so I'm going to put 25 more back here. Confirm that one. Now, as the market moves forward, we can manage our Stops as we have in the past. Following the trailing up with the blue light on one, and maybe managing and holding our Stop back manually moving the other.
That's how we get back into a market that we got stopped out of.
Of course, this would be the same signal, had we not got stopped out completely. Maybe we would use the Advanced Strategy and only got stopped out of half of our trade. We could add on, get back in with some additional shares. Maybe we got stopped out of half of our position, this would be an opportunity to put the other half back on.