Stopped out of trades? Taking losses? This could be why...

My SMMT trade idea is a good example…                                                                                                                                                                      Good Morning! A lot of traders struggle with getting stopped out of trades early… Only to watch the stock play out exactly how they thought. But instead of being in the trade and riding the momentum, they’re on the sidelines with FOMO and a small loss to show for their efforts. If that happens to you, I’m going to help you out… Because there could be one simple solution to this problem. This week, I've talked a lot about using the chart to plan your trades… And how to use what you see on the chart to help you avoid buying the tops of a move… Today I’ll show you how to use the chart to help you capture [big upside moves]( without getting stopped out too early… How to Capture More Upside Moves Yesterday in Pre-Market Prep and the [SteadyTrade Team]( I said Summit Therapeutics Inc. (NASDAQ: [SMMT]( was a watch for a weak open [red-to-green move](. The stock spiked and halted, then eventually went green… But then it went red. Then green again, then red... Then we finally got the big move to the upside we were looking for. Maybe you bought the first red-to-green move, then [stopped out]( when the stock went red thinking the move or pattern didn’t work. And maybe you bought SMMT multiple times before finally getting frustrated and giving up before the trade started to work… If that sounds like something that happens to you, let's look at a few different [risk management]( options that can hopefully save you some frustration next time… Three Risk Management Options You can see on the chart that SMMT hovered around the red to green line for about 40 mins before it made its move. SMMT chart: 1-day, 1-minute candle — courtesy of [StocksToTrade.com]( If you bought the first red-to-green move with a trading plan and a good risk level, you could have the patience to give the stock time to make its move. In SMMT there were a few options... First, you could’ve used the top of the consolidation earlier in the morning as your risk. This isn’t an exact science since the stock went through it briefly to the upside. But you can see, for the most part, there was a key level where the stock struggled… It hit this level multiple times but couldn't break through. SMMT chart: 1-day, 1-minute candle — courtesy of [StocksToTrade.com]( And once SMMT broke through that level with volume, [resistance became support]( and SMMT held that level on a dip before continuing higher. The next option you can use as your risk is [VWAP](. Remember, [day traders use VWAP]( as a way to determine which traders are in control — longs or shorts. If SMMT broke below VWAP it could mean shorts took over control and it would be a good time to cut your loss. But SMMT held VWAP through consolidation… SMMT chart: 1-day, 1-minute candle — courtesy of [StocksToTrade.com]( The last level you can use as your risk is the low from the previous dip. This gives you wide risk. So if you like to use daily lows or the bottom of dips as your risk, make sure you're using the right [position size](. You don't want to take too big of a loss if you have to cut it. Big losses are a lot harder to cut and accept. SMMT chart: 1-day, 1-minute candle — courtesy of [StocksToTrade.com]( Having a trading plan shouldn’t just include your entry. You need to know where to cut losses so it gives the stock enough room to work, but also where it won’t hit you with too big of a loss. So play around with different risk levels. Track what happens, then adapt until you find what works for you. The last thing you want is to take a big loss and be out of the game for good. Especially since we’re heading into one of [the most exciting seasons to trade]( The opportunities could be off the charts thanks to economic circumstances and [this winter trading phenomenon](. I want you to be there so you can capitalize on the opportunities! Have a great day everyone. See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade   sponsored   sponsored   [The Trading Tool That Gives You An Edge In The Market…]( StocksToTrade’s Breaking News Chat alerts major catalysts right as they’re happening, allowing you the chance to get in on the action. [Try It Out For 2-Weeks Today!]( Recommended Membership Gifts   ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( [Mark Croock Evolved Trader Daily](   [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Spotify]( [Click Here to Unsubscribe]( (As an Amazon Associate, we earn from qualifying purchases.) 13809 Research Boulevard, Suite 500, Austin, TX 78750 *Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. StocksToTrade cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns. Copyright © StocksToTrade.com