You are here: Educational Videos » Historical Simulator Plug-in » Day Twenty Six
Historical Simulator Plug-in
Day Twenty Six
Video Transcript
Okay, next day, next tic. Let's take a look at what Stochastics is telling us. We're down in that oversold region. Am I going to leave my stop loss where it's at? I think I'll leave my stop loss where it's at.
I want to see it break down below this little area of support right here. See that? If it can break through there..
Now, you what some people might do, they might get rather aggressive here. We're playing with other peoples money. We've been pretty successful this month, we've made a couple bucks. If that thing breaks below there, I might want to buy another one. Sell another one, excuse me.
Not a bad idea to sell on the way down, it's called pillaring. Let's come down here, as long as you sell 1. If you start selling 2, 3, 4, as you go- that's pyramiding. We don't want to do that, stay away from that. Pillaring is not so bad.
Sell 1, sell 1, sell 1, sell 1 as you come down into these markets, it's not a bad technique. Let's consider whether we want to do it, or not.
Let's go ahead and do it. Sell (1) stop, okay. That means we want to come down here and change this to settings, get us out with 2. Things are going in our favor, things are dropping hard. We need to set our stop loss settings to 2. If we do that, actually, wait a second, we don't want to do that until that order is filled. Because I don't want that to turn around and fill me. I have 2 going the other way before my order has been placed, before my order has been filled. Don't let me forget to do that, I have to remember.
Okay, that's it, see what happens tomorrow.