DTT Buzz

Most people think of Stops as an exit tool...something used to define risk in a trade, or lock profits in after a nice move in your favor. That's certainly a solid way to utilize Stops, but it's not the only way.

Stops can be used as an entry tool as well. You can "Buy @ Stop" and "Short @ Stop."

• Buy @ Stop means you want the stock price to move at or above a specific price before the buy order fills. The Stop entry price must be above the current price when placing a Buy @ Stop entry order.
• Short @ Stop means you want the stock price to move at or below a specific price before the short order fills. The Stop entry price must be below the current price when placing a Short @ Stop entry order.

This entry strategy is great when you see a solid technical set up that is close to breaking. For example, lets say you have an ascending triangle formation that is 3/4 complete and currently trading at ascending triangle resistance. You expect a bullish break out, but don't want to buy until the resistance has broken. Place a Buy @ Stop order with the stop price above the resistance level. The buy order will only fill once the stock prints a price that is equal to or greater than the Buy @ Stop price you set.

If you have any questions about this strategy, feel free to leave them in the comment box below. I will receive the comment via email, and will answer your question as quickly as possible...typically within 10 minutes of receipt if the question comes during regular business hours.

Regards,

Nick Fenton

Sr. Trade Analyst

p.s. - Be sure to call 866-232-9872 and ask about our Trials!!