Article and Link Directory | Link Directory  - ARTICLE DETAILS
Friday, November 16, 2018
CATEGORIES
SUB MENU
FIND US ON FACEBOOK
FaceBook
Promote Your Page
WHIPSAWS IN THE MARKET

Article Description.

A whipsaw is a representation of profit-taking going on in the market.

Article

One of the factors to consider when trading with stop-losses is whipsaws. Whipsaw is the name given to the tiny and regular market movements during trends. For example, when a share is in an overall bull trend, it will periodically turn over and fall in price for a couple of days, before resuming it's a general upward trend. This is a whipsaw. A whipsaw is a representation of profit-taking going on in the market.

People who have made a good profit on the shore after it has had a strong rally up are now selling to realize that profit. Their selling pressure temporarily halts the upward bull trend. The market absorbs these sellers with an abundance of buyers and then the share continues its bull run. Whipsaws exist in bear markets too. One of the threats of using stop losses is the risk of being Whipsawed-out of the market. If the whipsaw is greater than your stop loss, then you may end up selling before the share reaches its actual peak.

This is just one of the realities of share trading. It will definitely happen to you. It happens to the best of us. All you can do is to develop a series of selling strategies to complement your stop loss. Serious traders have been known to use up to and over 5 different selling indicators on each trade. All indicators must be positive before they will sell the share. Even then, it only improves their trading, it doesn't make it 100% reliable. For most people, though, just using a stop loss will go a long way to improving their trading results.

Author Resources

Category.

Article Information.

  • Author: 
  • Date Added:01/27/12 
  • Expiry Date:01/27/13 
  • Date Released:01/27/12 
  • Rating:
  • Reviews:6 
  • Ratings:0 
  • Article Type:Featured 

Rate Article.

RANDOM BANNERS
SHARE LISTING ARTICLE OR PAGE




Share
OUR DIRECTORY TWEETS
RANDOM ARTICLES
  • Pearl Rings
    Pearl jewellery is the most yearned among all ages of women. Especially, pearl rings are the most sought after pieces of jewellery. These rings look exquisite and exude real beauty. There are many different kinds of rings available in market today bu
  • iPhone Transmitting From 2G to 3G
    iPhone 3G was released on July 11, 2008, in twenty-two countries. It was released including the original six countries.
  • Facts About Saab Automobiles
    The article represents a brief overview of Saab corporation history that had a major influence on the design and construction of their automobiles. The emphasis is placed on the basic trends of Saab cars line development.
XXX