One of the most common ways to protect yourself in the marketplace is to have a stop loss on each trade. This of course is something that you should always do, as we have to protect our trading capital first and foremost, as it is without a doubt the most important thing when it comes to becoming profitable. This of course is basic knowledge, but there is an alternative to placing a hard stop loss, as many people use trailing stop losses. Trailing stop losses function initially like a normal stop loss, meaning that once a certain price gets hit, the broker knows that it is to take you out of the market out of the best price possible. This minimizes losses, and protects the trader from sudden moves. However, the trailing stop loss allows you to dynamically change the level of the stop loss as the trade progresses. In a nutshell, what the trailing stop does is follow the movement of the actual trade. An example would be if you have a 30-point stop loss, and the market falls below that level, we will be taken out of the market. However, as we continue to grind higher, the stop loss moves up with the gains of the trade. In other words, if the market rises 50 points, the stop loss moves up 50 points, offering a stop loss at a gain of 20 pips. However, when markets pullback, the stop loss sits still. In other words, it is very similar to an object on a string, as it needs to be taught in order to be moved. That’s very similar to how the stop loss works.

In this video, I discuss the possibility of hiring somebody else to trade for you. There are plenty of places to find money managers on the Internet, and as a result you will sooner or later asked this question of yourself: “Can I make money, or should I hire someone else?” There is a case to be made for doing either. Quite frankly, there are a lot of people out there looking to trade your money. It’s not hard to find someone willing to do it. However, it’s not necessarily easy to find one who’s good at doing it. You need to find a verifiable record, and you should be very leery of people who claim any extraordinarily large gains. They typically will blowup sooner or later, due to using far too much in the way of leverage. You will run into people who claim to make as much as 50% week, which is a really bad scenario. If you are looking to trade on your own, that comes down to whether or not you have time to learn how to trade the markets, or even if you have enough time, can you make the money necessary to make it worth your time? If you don’t have enough time to learn, trade, or don’t have the profitability, then you obviously will need to look for someone to major funds. However, keep in mind that there is a percentage that they take out of the gains, so having said that it is more expensive down somebody else do it.

One of the most recent developments in the trading world is the concept of social trading. Initially, this was found mainly in the currency trading world, but has been adopted by stock traders and commodity traders as well. Essentially, social trading is a place where traders will post their trading ideas, and go back and forth with each other on potential trades. Some places will do it automatically, meaning that there is some type of software that you plug into your trading platform to automatically post positions, while others will rely on you to input your trade. In theory, this is a great idea. However, in practice it is much different. Most people who look at social trading are looking for someone to make their trades for them. In other words, they are waiting for someone to tell them what to do. Typically, what happens is that the new trader will see somebody in the rankings that has made an astronomical return over the last couple of weeks. However, by the time that person gets that high up on the leaderboard, they almost always turn around and fall hard. You will see things like 400% gains in a week, followed by somebody being wiped out. This is because they do not understand leverage, and the new traders that follow them will suffer the same fate.