Chuck Hughes: The Best Trading Strategy in 2009

When I trade stocks or options I like to use money management rules to limit my downside risk. When I purchase a stock or option, I like to limit my losses on a losing trade before they develop into large losses. For example, I will normally sell a stock if it drops 7 to 10% below my entry price. Limiting losses is an essential part of every successful trading program.

The problem in todays volatile markets is that a stock can easily decline 10 to 15% in one day. This type of volatility can make the timing of your stock or option purchase very difficult. The table below lists some of the stocks that I currently own. These stocks are on a buy signal based on my trend following systems and my trend confirmation indicators.

The table lists recent one day declines in these stocks that I own. Following a money management discipline of limiting losses can prove difficult with current market conditions. You could buy a stock and then have to sell the stock the very next day if it suffers one of these types of price declines.

In this video you will discover two trading strategies that provide outstanding profit potential and at the same time provide substantial downside protection. This downside protection can help you maintain your positions during volatile price moves and can result in a high percentage of winning trades.

Category:

Education

Tags:

• trading strategy
• options
• stock
• profit
• risk
• chuck hughes
• volatility
• buy signal
• trend