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287 · Robb Reinhold - Consistency Beats Intelligence Every Time

Chat With Traders

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Understanding Logistics Complexity and Trading Stop Techniques

Staying updated with logistics advancements is crucial as supply chains grow increasingly complex. Engaging with resources like the Beyond the Box podcast can enhance understanding of digital disruptions and the importance of supply chain resilience. In trading contexts, it is statistically significant to note that there's a 33% chance of being stopped out within the first five days when using a two Average True Range (ATR) stop technique. This probability can be analyzed through options market data. Additionally, a systematic approach to moving up stops is vital: once a stock reaches a 2X ATR profit, the trailing stop adjusts accordingly—increasing as the stock price rises, first to 1.5X ATR and then to 1X ATR at a 4X ATR gain. This method emphasizes the need for a strategic approach to trailing stops, ensuring the trade remains protected as it becomes profitable.

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