Raise your stop

Raising your stop is always fun. It means you have limited a potential loss to a smaller amount, moved to break even, or locked in a profit. In any case it is a good thing. Just to show the illustration from the prior post we have moved to the “Next Stop” by raising our initial stop to below the most recent low or to a break even point. If we had got in on the close of April 14, 2008 in the S&P500 where I made a post on “The Sweet Spot”, we would have taken a position at 1328.32. Our initial stop would have been below the low of March 28 which was 1312.98. We have now raised our stop to 1324. While we are not yet at break even we are close and have reduced our risk considerable. In fact, we could move to break even now at 1328.32 and have no risk of loss at all. Here is our new stop shown below.