Stops or Staying Power

Trading without a stop loss would be like driving without a seat belt!  Or, worse yet, without brakes!

Or would it?

When your stop loss gets hit, money comes out of your account.  What was only a paper loss becomes a realized loss.  Your account value shrinks.

I have found another way.  I call it the SAG Method.  (Bet you can’t guess why.)

You can trade without a stop loss.  You just have to replace it with something else.  I am not talking about using options.  You can structure a position with nothing more than buys and sells of stock so that you do not need a stop loss, do not sacrifice your gains, and potentially end up with far greater profits.

All traders have experienced being stopped out only then to see price move in their direction without them.  This trade management strategy solves that painful problem once and for all.  Your losses remain unrealized, and you have the staying power to remain in a trade until it comes to fruition.

I have used this strategy to double my investment twice.  Had I been using a stop loss, I would be poorer in two ways:  First, I would have locked in a loss.  And, second, I would have missed out on a huge rally.  On top of that, I actually ended up increasing my position size and reducing my cost basis, so it’s a win-win-win-win.  (So far, I have not gotten tired of that much winning.)

I trade everything.  I day trade futures.  I trade option spreads.  I even write forex robots and other automated trading systems.  But no trading strategy has netted me more trading profits or more consistency than the SAG method.

If you are interested in learning more about the SAG method, fill out the form below.

This may not be the Holy Grail of trading

But it's very different from any other chalice you've ever drunk from in your trading career. You owe it to yourself to find out more.

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