I have a question about the stops mentioned in the Top 10 report. If for example the report mentions to use a stop loss at the 23-EMA, I am assuming if the stock closes below the 23-EMA that it should be sold (not intraday). I have heard Ross mention this is his method in the videos I’ve been watching.
I can position size accordingly when I enter the trade. But I guess if the stock closes a lot lower for some reason than the moving average, my loss could be much larger than originally planned.
Am I looking at this the right way when I’m looking at the stop loss notes in the Top-10 report? Any pointers for me when using this strategy? I do like it that I can avoid intraday shakeouts (where a hard stop would have taken me out), but not sure how to factor in the potentially larger loss than anticipated.