My last trade using the Bollinger Bands Strategy Trade ended today with a profit of 7.8% in 3 days. This type of return though is not by chance but through understanding how to read the signals for both entering the trade and exiting it.
Capital Exposure Is Greatest Risk To Loss
Profit aside, the advantage of these types of trades is that capital is exposed to the volatility of the stock market itself, for very short periods of time.
This is what makes investing safer for the retail investor. The longer our capital is left exposed to the wilds of the market place, the greater chance there is for loss.
Safely Profiting From Volatility
The Bollinger Bands Strategy Trade is one of the trade strategies I developed in the late 1980’s following the crash of stocks in 1987, as I was looking for a way to safely profit from what was then becoming large swings in volatility among stocks.
After testing the strategy for over a year I started to use the strategy in 1990 and have tweaked it ever since.
5 Key Exit Signals
This article looks at the 5 key signals I follow that tell me when to exit a Bollinger Bands Strategy Trade and lock in my profits. This strategy paper outlines exactly what I am looking for in each of the 5 key signals, how to read the signals and how to react to them. It studies exiting a trade in a number of ways and how the exit strategies for the Bollinger Bands Strategy Trade are laid out to safeguard the capital in use and secure as much of the profit as possible throughout the trade.
High Comfort Level
Since commencing the use of the Bollinger Bands Strategy Trade over two and a half decades ago, this strategy has rarely failed to provide a return for the risk I take each time I place my capital into a trade. This is one of the strategies that gives me a high comfort level and allows me to sleep well at night, no matter what the market throws my way.
This strategy article is 3050 words in length and requires 12 pages if printed. It is for FullyInformed Members.
5 Keys To Reading The Exit Signals For The Bollinger Bands Strategy
FullyInformed Members can read this strategy article directly through this link or Members can sign in to the full members site here. Non-members can join here or read about the benefits of a membership.
These types of strategy articles is what FullyInformed.com is all about. Learning how to become a better investor. Learning how to enjoy investing while protecting capital and controlling losses. It is learning about building a portfolio that compounds and grows month after month through strategies that offer some safety as well as profit.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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