Logical Stop Placement

Since I have deemed this week, "Money Management Week", I felt like I should mention a new Investopedia article titled, "A Logical Method of Stop Placement." I'm not overly impressed by the article but you might find it more useful than I did.   The author gives a brief overview of 5 different types of stop methods:

1. Hard stop - placing a stop a predefined number of pips away from the entry price
2. ATR % stop - stop calculated by taking a percentage of the current ATR
3. Multiple day high/low - placing stops at predetermined day's low or high
4. Closes above/below price levels - placing stops above or below specific price levels (ie: double zeros)
5. Indicator stop - stopping out a position based on the value of a certain indicator (RSI, ROC, CCI, etc)

You can read the article in its entirety.

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