How LDR Can Help You Minimize Losses

A quick review of the posts in Sept yielded the following:

-8 patterns were completed and profitable=$$

-3 patterns did not complete = no trade, no harm

-3 patterns were completed but failed=loss

If you traded all 11 patterns & used money management on the 3 that failed you would have been net profitable. Speaking of money management, here is one tip I use.

Setting your stop loss

I learned this simple money management technique from a well known & successful trader, its called LDR. LDR stands for Last Day Rule and is pretty straightforward. When taking a position on a breakout H&S Top or Double bottom (it doesn’t matter), the stop would be the lowest point of the day. Here is an H&S bottom example. As you can see below, the stock after breakout never challenged the low of the breakout day. (NB: This technique is not fail proof, its just a way to decide your stop loss)

Guess the name of the stock and type it in the reply below. The first correct answer gets a trading related ebook. 


Have a great weekend!


3 Comments on “How LDR Can Help You Minimize Losses”

  1. davidzarling says:

    At first glance, I thought it was Digital Ally (DGLY). Then, I was thinking this is the semiconductor sector because I’ve seen several charts like this in that space. But, this is NQ… NetQin Mobile.

  2. Al says:

    blackberry last year ; back to ~8 after visiting 18

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