We have established why a safety stop order is a requirement for the successful investor. Now lets look at some of the simpler methods. There are 3 basic methods (and many more we can not discuss here) for stops that virtually anyone can master. These cannot be covered in detail here, but you can do further research on ones own.

Any share, fund or Exchange Traded Fund (ETF) you buy you predict is going to go upward, but there is the chance that it may go in the other direction. The share you buy is $50 per security. Our numero uno thought should be how much am I willing to risk if I'm incorrect and that is called a mark down limit. Lets pick an arbitrary amount of $5. Thats 10%. If it goes downwards that is the maximum amount you should lose and you still have 90% of your spondoolicks remaining to find a better investment. When it goes upwards you can want to protect the surplus by moving the stop upwards.

When an stock advances to $55. 00 our stop of 10% should be moved to $49. 50 that is 10% of $55. When it goes to $60 ones stop is now $54.
Nothing complicated here. There have been many equities that gone from $20 to $250 and then downwards to $2. 00.

As Ihave asserted before never buy anything unless it is going upwards. You add upward the closing premiums for the past 20 days and divide by 20. This should be done once each week and the number calculated is ones stop. The steeper the advance the shorter should be the number of days for the moving
average. If you are lucky enough to have one of those skyrockets you might even be downwards to a 5DMA. Some big swinging dicks use a 50 day MA and other participants even a
200-day MA. Mutual funds lend themselves to the latter,

Finding support and resistance pips requires a more classy approach. This is
something you are going to have to study. There are many places on the Internet that have short explanations with examples of how to determine
these ticks. It might rest for a while with a short upwards and downwards sideways pattern that forms
before the following move further. Our stop should now be downwards at the point the recent upward move started .