Locations & Training Facilities

As far as follow-up stop losses are concerned I suggest that you develop your own procedure. In terms of dollar stop loss, a decision should be made on a per-market basis. In S&P futures for example, a 150 point or $750 lead on the market is a reasonable point at which to consider placing a stop loss at break-even plus commission or slightly higher.

Remember that if you are "scalping" the market you will want to use an even closer follow-up stop loss. Multiple units or contracts may be considered as one way of maximizing your potential profit without significantly increasing your overall risk.

Consider the following procedure: Rather than establish your initial position with one contract, you establish your initial position with two contracts. Assuming the market moves in your favor, you exit one contract at a predetermined target either determined technically or on a dollar basis while you retain the remaining position with a specific breakeven plus commission and small profit stop loss to protect you during the day and exit the position on the close or shortly before the close.

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