May 18: Secret Tips and Tricks That Only The Experts Know - How to Set Stop Losses
Anytime that you enter a position, you are going into the Market blind. You don`t know what point of the trend you are entering in at. You might be entering into a stock just before the trend changes. To protect your trading float you need to set a stop loss. This needs to be done before you enter a trade, so that there is no room for error, or last minute indecision. A stop loss is simply a predefined point at which you exit the stock.

Unlike a stock, which represents equity in a company and can be held for a long time, if not indefinitely, commodities contracts have finite lives. The word “contract” is used because a commodities contract requires delivery of the commodity in a stated month in the future unless the contract is liquidated before it expires.