Swing Trading with OCO, Conditional, and Trailing Stops | John McNichol | 11-12-19 | Swing Trading

Swing Trading with OCO, Conditional, and Trailing Stops | John McNichol | 11-12-19 | Swing Trading

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Types, of orders, that swing traders may use so. Stick around. Good. Morning to those you that are live or, listen in the archive session good morning you Scott and everyone that's coming online once, again welcome to swing trading days, two weeks you. Can see my Twitter handle, on the, main. Page as well as on the bottom of the screen if you'd like to follow please. Go ahead and add that, to your Twitter followers there you, can learn a lot about the markets some of our education, also get to learn about, myself and some of our other fine, instructors, and coaches here at TD Ameritrade education. Let's, take care of our disclosures, remember options are not suitable for all investors as, these special risks, inherent, to options trading may expose investors, potentially rapid and substantial. Losses carefully. Read the previous phytic copy of characteristics. And risks of standardized, options, spread. Straddles, of the multi lay option strategies can entail substantial, transaction, costs including, multiple Commission's which may impact any potential, return also, advanced option strategies often involve greater and more complex risk than, single leg option trades and investors. Should also consider contact, and a tax advisor regarding. The tax treatment applicable, to spreads and of the multi leg option transactions, now, in order to demonstrate the functionality of the platform we will be used in actual symbols keeping, in mind TD Ameritrade does not make recommendations. Or determine, suitability of, any, make. Or. Determine suitability of. Any, security or strategy for individual traders any investment. Decision you make in your self-directed account, is solely. Your, responsibility. Transaction. Cost commissions other fees or important factors should be considered when evaluating any trade and that zero Commission, applies to online US Exchange, listed, stocks ETFs, and, options trades and a $0.65. Per options, contract, fee applies, to option, trades now we have a demo account that were utilizing, for a practice trades you. It looks like a real account but it is not you. Have the ability to practice what you learn here today as well with paper money that software's. For educational, purposes, and successful. Virtual trading during, one time period does not guarantee successful. Investment of actual funds during a later time period as those market conditions change continuously. As always. All investing, involves risk including the, risk of loss and while this webcast discusses. Technical analysis, other approaches. Including fundamental, analysis, macer very different views now. One of the orders that we'll. Be discussing. May involve a stop loss order, stop-loss, orders are not guaranteed at, an execution, at or near that activation, price, once, activated they, compete with other income, in market, orders. All. Right good. Morning you as well basil Pierre Paul Ron Rafa. Serie, and every IDI everyone, else let's, bring up our thinkorswim, platform and, get, into our discussion. What. We're gonna do is we're going to focus on. Different. Swing setups, and apply. In, different. Practice, orders, we, use examples, and point your attention over on the scratchpad. Examples. Of an osio order, one cancels other. Conditional. Orders and. Since. Many, people have been asking about, this at some of the live events, such. As OSHA joined me in Orlando, for, the investing. Fundamentals, or, possibly. In, Denver, at. The Denville Denver, Technical Center for that the. Technical, analysis, and options, workshop, looking. Forward to seeing a bunch of you if, you're in the area in the Chicago area as we'll, have a, technical. Analysis, and options. Workshop. North. Of Chicago. There, that'll, be on Friday, and Saturday. If, you want to keep up to date on any of our live events one can just go to the Education, Center and, select. In person, events. And. You. Can see, Northbrook. Illinois this. Weekend, and coming. Up for those of you that I. Want. To learn more about some of the more advanced. Option, strategies. That we teach a good, friend Mike Follette will be in downtown, New, York the. Following, weekend, and. Then those you in the Atlanta area Ben, Watson, will. Be teaching, a. Another. Technical, analysis, and options workshop, in the Atlanta area and, you.

Can Go ahead and see our schedule through the rest of the year. Alright. So by. Practicing. So. Many different order types osio conditional. And trailing stops our learning. Objective, for the end of this session is one, should be able to place a practice, trade using. One or any. Of, these three, different types of orders that we'll go over here today, if. You have any questions, feel free to utilize the chat would certainly love to hear from you yes, Mike I heard you got some snow in Chicago. O'Hara, had a little trouble keeping one. Of the planes on the runway there hopefully that. Won't be a recurrent, occurrence. There so. Let's, go ahead and bring. Up a few things up here just. To take, a look at the market. Market. Is bouncing. On the SPX. So. Some swing traders may look at that as an indication on some. Additional swing, trades, as prices, trading. We're. Closing, above the high of a low day now. On. The SPX that wasn't necessarily the low day that was actually, the previous. Day, but. When prices, are inside. Guess. I can probably go and go over on the big screen here when, prices are actually inside. It. Has a starting point I can actually bring up. Unp. Which. Was a previous. Swing. Set up that we had set on. This. Class. I blew we had originally, initiated, back. On or around the, 28th. As the price was breaking, out. Let's, try and highlight this. As. Price was breaking. Out I believe above, some previous highs prices. Went ahead and pulled back and retested. Forming a flag and then, we see price trading. Above and closed above the, high of that low day. Based. Off the size of the pattern we were targeting, around the 183. 38, mark. And. We. Had a stop that I believe was approximately. 3%. Below. The. Breakout point fact. I think the breakout was actually a little bit earlier back in and around here. Now. Right, now the. Stop. Is. Currently, set up at its initial stop now, notice that the prices, had. Actually, moved higher, I think, you'd probably do this on a big screen as well I noticed.

That The prices, had moved higher but have not a. Limit, order and then. We have the stop, down. Here which is 3% below that breakout point, this. Is an example of an O Co one. Key stop order would be cancelled. Now. If the price was to go ahead and trade down to. The stop order that, would go ahead and fill. And. Then. The. Limit. Order would, be cancelled hence that's why it's called an O CO another. Common term is OC o bracket, prices, are bracketed. In between. The. Limit. Which would be the target and the, stop which is the basically, the stop loss now keep in mind if. Price does trade down to that trigger price there's, no guarantee, it would be filled at that price, it. Can be a it will compete against market orders and that exit, could be a little lower some cases it could be a little bit higher dependent if the market actually bounces, but typically you probably end up being lower now. A cool thing on the the. Thinkorswim. Platform and, on the charts when. It comes to trade management. Notice. That prices, did. Move. You. Know approximately half, of that, target move in fact a little bit higher, today's, intraday, high is actually, fairly close to, that, target. One. Form of profit management as traders may go ahead and adjust. Their. Stop at. The very least. May. Go ahead and adjust the stop to. A break-even. This, is cool on the chart on the stock order I can, go ahead and adjust it, to, pretty. Close to where the entry price was and then, go ahead and send that stop. Is adjusted. Another, thing traders. May sell part of the position. Which. May be beneficial, since there's, a zero. Commission's in, a lot of the US equities, you know one of the concerns as far as scaling or scaling out is transaction, costs now there may be transaction. Costs when it comes to the options, as far as on the contracts, but, you're. Gonna have particular, potentially. Those contract, fees regardless, of when you. Would exit the trade so, it may give one more flexibility. To close out part of that position. Now. Another, thing it could potentially do is what's. Referred to as a. Trailing. Stop. Let's. Say. Pretty. Close to that target, and. One. Is willing. To give up a little bit of those games to, see if the price continues trading. Higher, and, from. There have. A stop, that may follow, that. Price higher. Since. I already have an open, position here, on. On. On. UMP we. Can possibly change this bracket order or actually I was just thinking about another stock from. Another class that we, can put one on so, we'll leave this bracket order here but, I just went ahead and adjusted. Us to, at least a break-even point. If. We wanted to since. It is also higher one. May look, at the low of the day and raise. The stop to a percentage, below that so, for instance yesterday's. Low and let me zoom in a little more on this one so we can get. A view of that and, look so get a drawing tool there let's get rid of that. So. Let's go ahead and zoom in on the chart. So. Looking at some of the more recent price action, one, could go ahead actually. On, UMP, did pull back a little bit I was actually looking at that high. Currently. Here is the low, right now if. I put my cursor on that bar. It. Looks like that is a low of about let's.

See. Mark. The bar there looks. Like that's a low of about 170. 443. So. If we wanted to we can go ahead and raise, this, stop up. To. A point below there now some traders may set a percentage or like a dollar amount we. Can say let's say 20 cents, below. That. Low and if, that low again was about and, let's. Go to the other screen so I can get a little more detail. There. You're going to edit this order here. Now. Probably could have adjusted this, before, I was out of town over the last week there so, sometimes I may not be able to as efficiently. Manage. Some of these trades as I'd like, but. If I just go focus on the more recent low, from, yesterday, which, is 174, 43, you, know we can set, a stop that's let's say 20, cents below, that. Low. Which. Would be 174. 23, so, I can go ahead and raise this up. And. We. Can edit that and put in that specific, price, I. Think. It was, 174. 0.23. And. It, will hit confirm and send and. Send. Now. There's another order that we have on here that. We did which was an option. Order. What. I'm gonna do is I'm, going to go to the. Monitor. Tab and. Under. A count statement. This. Is where you can plug in a symbol. So. We're following you NP as an example. And. Back, on the 28th what we did simultaneously. Was we did, a hundred shares of the stock and, we also bought one, call this is a longer dated call. Going. Out the February. Paid. $16.40. For it. Now. If we go ahead and look at the working orders. For. This one. We. Have an. Example, and. Actually I had to go ahead and re-enter, it a. What's. An example of, a conditional. Order now if you see under. Your working orders. Any. Of your working orders that have a little gear. Next. To it this. Would be an example of a conditional. Order and. What. A conditional, order does. If. I go and click on that little gear and some. Option, traders, may. Utilize this a lot is. You. Can actually put a condition on, the order, on when, it is put, to market. For. Options, some, traders may use a condition. Based. Off of what these stock prices, new him, so. What we had done was we had bought, an option, and we. Attached to it a sell order and just. Actually just a market, order. Something. That some, traders may utilize as, far as keep in mind that market orders, would. Fill at the next available price you don't have control over that price and so. Lot. Of traders may focus on stocks and options that are much more liquid and. Then. Use a condition. Where, if the stock does one. Or multiple, things you can actually plug in up to three conditions, here and. What we did was actually similar conditions, on what we did with the stock trade we. Had a target price if the, price is greater. Than or equal to and there, is our target price of about 180 338. The. Other condition, was, if it was less than or equal. To about. 161. So, this is another way that one can create, their own bracket. Order so to speak by, utilizing, conditional, orders I can. Also go ahead and. Do. A cancel and replace. If. You go back to this order and do. The same adjustment, that I did with the. Stock, tray I can, come here and do a cancel, and replace unfortunately, you can't do it right on the chart you can right click I, believe. If. You're on the chart you can't move a conditional. Order but I believe you can right click on it and you can do a cancel, and replace and. On. That cancel under place remember, the conditional, order will, have that little gear over.

To The far right and, if. I wanted to make the same adjustment, that I did on the stock. Let. Me just double check that price, I believe it's like 174. 39. Approximately. Or. I think was 170 423. Approximately. That's where we're at so. What I can do is I can click on the gear, for that option and. Change. Whether. One or both of. These. Prices so I can go and put in. Make. Sure you get the right price sometimes, get a little dyslexic, here yeah. I was 174. Leave. 23. Click. On that here, again. 0.23. Hit. Enter. Save. And. Then when we hit confirm and send you. Can confirm, that that, is the. Level that you're, looking for so basically kind of raising to stop on that. Close. That out. Get, that scent, there. You go so when Hanna cancelled the other order and sent the next one. Let's. Go ahead and show, you a trailing stop and then we'll loop back and we'll, actually do, some, new trades initiate, some, additional, practice trades, utilize. In Osio, as well. As conditional, so. On the trailing stop side. I'm. Gonna go to the monitor tab. And. We'll. Go to activity, and positions, and. This. Is an example of a trending. Position, that. We have on, DHI. DR Horton has. Been doing well over, time. There, if. I go ahead and go to the chart. Will. Bring up DHI. It's. Like dr hurt and went ahead and gapped. Good. Overall trend. And. Looks like this was on earnings, this, morning. Before. Market, now. You know there could be some pressure on home. Builders and real estate if interest rates do, rise although. You. Know overall a lot, of the, pressure. Has been to the downside overall. Although. Yields, have come off of their low since September. Which. Has been pushed into some underperformance. In REITs as of late I. Can. Also impact some of the home builders as well but. As far as with looks like last quarter things. Worked, out pretty well for DR. Horton let's, say at this point that one. Is at a target, and this, is kind of a key point. And then, one could go ahead and set something a. Little. Bit below there. Let's say we may have had a few technical difficulties, there sometimes. You may have to refresh, your screen I went, ahead and refresh, mine, as well, so, hopefully that is going, out. So. We're talking about the trailing stops so right here at about 53, 86. We. Have a low now, if let's. Say I want to go ahead and put a percentage. Below that I can. Go ahead and right-click on. The chart. We. Can go ahead and actually, what I'll do is go to the monitor tab, make. Sure we have our full position here here's, the DHI, position, I'm going to right click and. We're. Going to go ahead and, select create, close. An order and. We're going to select cell. I'm. Going close up the screen right here. So. Now what I can do is I can change this order from, a limit and we're gonna call this a stop. If. You got stop limit, and then, you have trailing stop what. We're going to do is we're in to change this to a trailing. Stop. And. We can go ahead and set a dollar, amount or a. Percentage. Amount. So. Let's, say as, a percentage, I can, go ahead and set a percentage, of let's say, 3%. It. Allows me to do that. There's. Some reason it whoa. Okay. So there we go so we got minus. Three. Percent, so. If you hit confirm and send. This. Will be creative trailing stop that'll trail three percent below that price so if the price keeps going higher. It. Will realize those gains if it pulls back three percent, then, it will go ahead and stop. Out at the market so. We, went in put that in let's, see if it actually shows on. The. Chart it may not show up on the chart but. If, I go to. Our monitor tab and click, on sell. This. Is showing kind of where we're at right now and it'll actually show you approximately, where that stop is at, that, time which. Three percent is showing up at 52, 52, right now so if we go to the chart. 52. 52 is pretty much right at the bottom, of this, gap right here, so. If the price goes ahead and trades, higher. If. The price goes ahead and trades higher, then.

This Stop will. Trail. By. 3%. And. If the price goes ahead and drops down it'll. That, stop will basically capture it and since this is a stop market, would fill at the next available price just, very similar to a regular stop. Order. So. Do apologize for those of you alive. If. It, may. Have had some streaming issues there hopefully that will not impact, the recording, you can go back and record. Watch, that later I think. Everything is working fine at the moment. Alright, now let's go ahead and actually see. If we can do a a practice, trader to utilize. In. Osio. Which. We already managed, on the, unp, and a, conditional, one which we had on unp that, we adjusted as well but let's see we can initiate a, new, one there so looking, at a couple of stocks that may be bouncing. See. How that's looking on the market. So. Here's Nordstrom's, JWM. Was. Looking to see if the price was gonna be pushing higher today you know form in a triangle. Pattern. From. A little more of a triangle, pattern there, inside. Day some traders may be looking for a bounce but look and see if this price is able to break out. This. Sum we teach in our, Monday. Class on technically, speaking on. Breakouts. And reversal, patterns. Triangles. If. The price was. From. Support, to resistance. That's. About a three, dollar move from around thirty-five up to thirty eight some. Traders may look for an additional, three, dollar move. If the price breaks and there's no guarantee that the price would hit that target but. That's similar on what we did with. UNP. So. It looks like that, hadn't quite broken. Yet. We. Do have some script over here a lot of you may be familiar with this. After. Those you add or not you. Can go ahead and look in the archive for. Some of the webcasts that I teach the one I taught yesterday. Illustrated. A couple of these on. Technically, speaking I believe. The title is if we go to education. And. Go. To webcasts. If. You. Missed a live session or maybe, you do with some of the issues may have had today if you need to go back and review. Something just, come to, webcasts, on the education, tab select. The archive, you. Can, find, by instructor. And. I'm your host John McNichol. And. This. Is the session that I did yesterday that, illustrates, some, of the script that, is over, on. The. Left-hand margin. Also. Another way of making, sure that you're, not missing, any. Of these webcast, is at. The bottom of your YouTube channel that you're viewing there's. A subscribe, button for traitor talks pretty. Much everything that I teach as. Well as some upcoming instructors, will. Teach whether on trader talks or on investor, insights, so, active trader all of our active. Trading, webcasts. Are on that trader talk so make sure you click Subscribe if you want to continue following those, alright. So. Let's, see any stocks at whether, maybe bouncing. Or breaking, out a couple. Other ones let's see Autodesk, they're a dsk. So. Autodesk, on a technology, side, looks. Like we have a, pretty good. Move. On the day. As. Price. Breaking. Out breaking. Out of a smaller resistance here. Looking at those highs. Some. Traders may look at this pattern as a as. An. Inverse, well. Actually more of a a, double. Bottom pattern month, so some swing traders. May. Look, to exit, prior to that event not. Knowing what the. Unknown of going. Into that earnings event. Now. If I go ahead and. Let's. Say we do a practice. Example, on this one. Let's. Do it with an option, since this one is priced a little, bit higher although if one one or two they can buy individual, shares. We'll. Take a look and based. Off of that resistance point a 155, 81, will. Set a stop that's a percentage below that breakout point let's say we'll do it by about three percent so. We'll go to the calculator. Bring. Up your gadget. And. We'll, take one. Fifty. Five point. Eight one. Times. Point, nine, seven.

That. Would be a price that's three percent below that, breakout point. So. I already have a line. On there we can visualize, this trade. So. I'm trying to get on. That line. Well edit that line, and. We'll make that 150. 1.13. We. Can make that any color we want any. Style. So. I can visualize a where. That potential stop would be. As. Far as the target. Measuring. From. A low to a high or. From that. From. That support, to, that resistance. And. We can right-click on that line. Duplicate. It and we can project out, that. Potential target. It. Looks like that's just about. 170. 326. So. We can go ahead and take another. Horizontal. Line. 173. 26. Click. Okay and there's. That potential target, so. Now since. We have this information. Now. We have the ability of. Creating. And order. With. That order where we, can do a, option. Select, if. One's buying options traders are probably looking at periods of time that, are going further out. Making. Sure they have enough time and. So. Let's say we'll go ahead and go, out into, December. And. Then. We can also go ahead and take a look at the. Strikes. I'm. Expanding, the number of strikes here on the center here and. We. Can also bring up some of the Greeks, let's. Say deltas, and. A. Starting point could be you, know at. The money. Or. If, they're more. Strongly bullish, you may select a strike that maybe a, couple. Of dollars in the money if one, hits that target, you. Know in our example, target being 173. You. Know one may select. An option at, around 160 you. Know maybe at around, 165, the. Further you go out the. Less probabilities. Even. Though it looks like the options are cheaper. You. May not have the desired game that. You're looking for so let's just go a little, slightly. Out and, we'll. Look at the 165. S here I. They're. Gonna cost about 4 dollars and 55 cents. Now. The next thing about this is we could position size this to a maximum, loss I can right click and I'm gonna do a buy custom, width, stop. And. As. Far as the number of contracts, that we'll buy you know one contract, is going to be 460. Dollars. Let's. Say I want to do about a half a percent of this account. That's about 1700. So. Let's. Say I'll go ahead and. Do, three contracts. So. I'll do three. Then. Close up this window so we can see that now. There is a little chain-link when you enter those orders if you click on that that should link your, by in your sell order. Now. Right. Now we are showing a stop. I'm. Going to go ahead and change this to a market. Order because we're actually gonna get out at, a market, price, we're.

Gonna Make this GTC, for good til canceled and. Now. Notice there's an error it says market, order must have day time and force that's, true, unless, you. Put in a conditional. Order, so, now we're going to go to the far right where the gear is I'm going to click on the gear. Now. Notice it doesn't appear, until you move your cursor on that order, over to the side. So. We click on that and this is where we can put in our conditions. And. Based. Off the chart. You're. Going to bring up the chart here, the. Other thing is if you go to the chart and you have it working order down at the bottom of the screen you have a little arrow that you can click to bring up that order this, is where I can. See. The 170 326, which is the target the 151, 15, which, was my stop. Now. I can click on the gear and. I. Can transcribe, the. Conditions. On to. This order so. For. Instance I click on that symbol says, Autodesk, I can, go to method, which, is mark and. Then. Right now it says less than or equal to so. On the less than or equal to I can go ahead and plug in where that potential, stop, would be 150. 1.13. Now. At that price the, stock goes at or below that, it'll. Trigger a market, order to close out the option and that will more, likely be a loss I can, click on the second line. The. Mark and then, change this to greater than or equal to mark. Is equivalent, pretty close to last price there and, then. Here plug in 173. Point. Two six, which. Is the target. When. We go and bring this up I join. Based off of the stock now I look at some questions and comments mark. Says. And. Mark. Says let's. See here. It. Looks like we may have had a few intermittent, issues. I'll. Be looking at the comments mark says so it seems like it would be a good idea to, add a trailing stop to all of your stock positions, Yes No maybe, so as, is, mentioned. Stops. Have. Varied, opinions on, how, people see stops, you, know whether they heard or helped a position. Stops. Can, be a way of managing. A, certain level of risk keeping. In mind though if price dives. Opens. Below that stop you, know your exit, could be significantly, lower. When. It comes to a trailing stop is, the. Stop will follow price, but. Sometimes traders, may have those stops a little too tight they get whipped out of the trade and the price just continues, its momentum. To. Higher. Highs or lower lows depending on your direction. So. One. Of the considerations as, far as stops is or, a trailing stop is. Allow. The price to at least make a significant. Move maybe, it's half way to your target, or at least a certain percentage, to your target, before one may consider doing that, otherwise. What may happen is, one. May be cutting, many, of their gains. Relatively. Short because their exit into position, too, early they're not given, price at least, an opportunity, over. The days two weeks to, reach that target, so. Again one. Can use trailing stops whenever they want but.

A More applicable, is once. You've realized, a. Potential. Game or a game that you wanted you're. Willing to give back a little bit to. See how much higher that price will go so, in the case of D. H Horton I was. Willing to give back 3%, of the. Stock's value to, see how much higher it would go versus. Just selling it outright. Hopefully. That makes sense. And. Let's. Go ahead and. Let's, plug in one more let's, say a couple other ones are looking here. PayPal, you know we haven't done much as far as with bearish trades we may do, that you, know as we if we see any shift in the market but. You, know PayPal has had some weakness as prices. Have traded. Lower you know we're talking my markers have made some highs and we're, seeing a bit, of what we would call a a Bear Flag I was. Looking for a potential practice, put. Trade those. You that are familiar with those bear Flags may. Look to practice on some, stocks and may be setting up similarly. Let's. See from a, bullish. End here. A lot, of technology, stocks, applied. Materials, and, we're coming really close to earnings, on the 14th, what. Kind of coming up on some resistance, some. Traders call this an ascending, triangle. These. Types of patterns we discuss and technically speak in every Mondays, at 2:00 p.m.. Swing. Traders may be looking for a breakout, this. Is a pattern, of about. 4, to 5 dollars, so. The price breaks out some traders may be looking to target a similar move keep, in mind there's no guarantee, that'll make that target. We. Say traders may also be waiting to see and which may have already are supposed to be a speech today for, President as far as with trade so I'm not sure how that's going. Financials. Have also been, going. Up pretty good. Goldman. Sachs. Potentially. Looking for a flag bounce. Now. Price has not trade above the high of, the. Low day. I'm. Trying to see if there's maybe a couple other ones Oh. Some. Material, stocks have been moving as well let's let's. Do this we'll wrap this up on. STL. D, steel. Dynamics a. Large. Triangle. Pattern. That. Broke out over the last day some. Traders may measure from your more recent, support. To resistance, and project. Out a similar move although more, of the intermediate, period some traders may be looking for a larger move. Will. Do is will do an example of a bracket order on this, one here. You. Know just based off of a smaller target. Looks. Like at about thirty. Five seventy, there so, I'll go ahead and mark that. You. May see some similar patterns and other material, stocks. If. We, go and look at a stop. We'll. Look at a percentage, below that breakout point so if we had a breakout, at. Around. Let's. Go above the more, recent high here. Let's. Say 3175. So. I'll set it a 3%, below that. Take. 3. 1.75. Times. 0.9. 7. That'll. Be about 30, 79. We're. Gonna put another line on here. We. Can right-click on that, if. Having a cursor on it. There's. A big mouse sometimes. It. Doesn't let me know if I'm actually touching, there or not I think, I got it right there there we go edit properties. 3079. Make. That one red, click. OK. All, right so there we go there's. The potential, stop the potential target, we'll just do a straight, Oh, Co. Bracket, it's very simple on the chart if we. Right-click on the chart and, select. By. Custom, with Osio bracket. We. Can go ahead and plug, in those. Prices. Let's. Go ahead and adjust this down a little bit. So. There's our target, price 3571. That. Would be the limit order.

And. We'll make the sell orders GTC, for good tool cancel first remember, when those orders continue, working for us, otherwise, they would be cancelled at the end of the day. Put. In the limit price of thirty, five, point. Five. Seven and, then. For the stop. The. Trigger price would be thirty point. Seven. Nine. Now. Keep in mind you go, ahead and look at this is. This. Is a and again, on this example, here, what. One can do is if, price, makes half of that move and we can actually visualize, this on the chart as well, let's. Say. We. Go ahead and bring. Up a a. Horizontal. Line. It. Looks like won't let me do it there, we go go. Ahead and put that line about halfway to. That target did that about approximate. Well. One can do is if price goes ahead and let's, say does, trade higher. And. At. Least makes. Half of that move, then. One can go ahead and adjust. Manually. Adjust this stop. To. A dollar amount or percentage below. The low. Of the. Most, current day, this. Is where some traders prefer to. Adjust, stops manually. We're actually you could still be trailing, this stop but just doing it man, versus. Just arbitrarily, putting, in a fixed. Percentage or, a dollar amount. By, doing it this way you kind of negate that, intraday. Activity. And as. Long as it stays inside the. Range of that previous day then, the price may, still have a chance to continue to rise. Otherwise. If you. Just have it fixed the. Tendency is that stop can get triggered out so, stops. Can be adjusted, daily, and if. Tomorrow price. Goes higher. That's. Beyond that target, then. We can set this stop let's. Say 20 cents below that low or, it goes higher you, can set it at 20 cents below that next low and keep traveling, up until it hits the target however, notice. That by, setting at least a mid point. One. Is willing to give the stock at least a chance to make its move before, the stop is adjusted, okay. Waiting, for at least a significant move before adjusting, it to, at least, a break-even. So let's go ahead and adjust that back down to. That. Order and we'll send that through so hopefully you learn something new today folks. Appreciate. The participation apologize. For, if, there's been some, internet streaming issues there as I've noticed on the chat there hopefully, the recording, will look, fine on that so, let's go ahead and wrap up on what we discussed here today, we.

Went Ahead and. We. Went ahead and we basically did. Several. Different types of orders one. From some existing. Positions, showing, you and how we can adjust an Osio bracket, directly on the chart it. Showed you on how we can, adjust a. Conditional. Order by. Right-clicking. On the order. Cancel. And replace and going, into the gear to, change the numbers on based. Off of our target or our stop, we. Showed you how to do a trailing, stop on. A position. Utilizing. A 3%, trailing stop on our example on D H, Horton and we. Initiated, two, additional. Trades. One. On s TLD, utilize. In a, Oh Co, bracket, and then. Also I believe the other one. Was. On. So. Many stocks there. So. You don't know trades that we got filled there was, on Autodesk. We. Use Autodesk for a conditional, order based off the stock price and we. Went ahead and did an O CO bracket, on steel, dynamics, utilizing. As straight OC Oh so. You should hopefully be able to practice this on your own and that's my challenge to you is pick. A stock or two and utilize. An O CO bracket. And/or, a conditional, order and, for. Those you that interest in trailing stops maybe if you have a position. That has reached, or near. Your, potential, target one. May potentially use, a trailing, stop to, follow. The price higher price. Comes down one, will be stopped out at that time all, right remember. Folks learning doesn't end here. Coming. Up at the top of the hour yet Barbara Armstrong, with, getting, started with futures. Now. Remember in order to demonstrate the functionality the platform, we had used actual symbols, keeping. In mind TD Ameritrade. Does. Not make recommendations, or, endorse any particular investment, or investment strategy, any investment, decision you make and, your self-directed account is solely, your, responsibility. And. Stand. By we'll see if the recording. Looks okay and it hopefully should be archived within, about an hour or, two so thank you so much folks have, a great day bye.

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2019-11-18 05:49

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