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Stop Trigger Adjustments - Decision TreesLearning when and how to adjust Stop Trigger Points (i.e., Sell-Stops and Cover-Stops) is critical to portfolio risk management. It also happens to be very confusing until you fully understand it. If performed incorrectly, it can be very costly in terms of ultimate ROI outcome. The following decision trees are provided to assist you in understanding the logic behind our Stop Trigger adjustments. But just reading the Decision Trees probably isn't going to help your comprehension. We suggest you print a couple of Position pages (i.e., go to Professor Profit's Portfolio, click a ticker symbol in either the Current Holdings or Closed Positions tables, then use the PRINT command in your browser to print the Position page -- preferably in landscape). Then compare the point by point Stop adjustments described on the Position page against the logic laid out in the appropriate Decision Tree. Practice makes perfect - try it against your own charts. If you need a tool, we suggest:
Remember, when viewing the flowcharts below, when we use terms "Most Recent Valley-bottom" or "Most Recent Hilltop" they have to have been confirmed. A Valley-bottom is confirmed by three subsequent increases in weekly closing price. A Hilltop is confirmed by three subsequent decreases in weekly closing price. Stop Trigger Adjustments for Long Positions
Stop Trigger Adjustments for Short Positions
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