How to trade with NO Risk (eventually): Long U.S. Stock Market BOT example from 7/29/15

We discussed the simple concept of trading "risk-free" in previous posts. When we say "RF" in any posts, this means "Risk-Free". So if we say "moved stop to RF", we moved our stop above (below) our entry price on long (short).

It's based around the idea that there are always uncertainties when trading in the markets. We feel that if you can get into a high number of "risk-free" positions, the ones that work out will really work out well! A lot of times, we see that a month is made from just a couple of trades that really took off for us. Trading "risk-free" results in a large amount of break-even trades, but also ensures that we never let a winner turn into a loser.

Here is a real-time example of trading risk-free with our Long U.S. Stock Market call from 7/29/15.

So, here is how to trade risk-free (eventually):

1) You start out with you max risk on a trade: Dow example was 150 points, on previous post

2) Once you get movement in your favor, move stop above entry price

3) If continues moving in your favor, spread out your stops so that you can lock in profits above break even

4) As days close and price levels set, move your stops accordingly. For example, if trading a BOT long, keep stops below prior day's low. As higher lows form, move stops higher.