For FullyInformed Members, Doug Harris has been managing the market direction portfolio and on Wednesday Doug did a trade that required the use of a tight stop-loss. He received a variety of emails wondering if he could explain the reasons for using such a tight stop-loss. In this article, Doug explains why he sometimes turns to a tight stop-loss both in his market direction portfolio and in his own trades within stocks, primarily Microsoft Stock.
Doug outlines the benefits using a tight stop-loss brings especially with trading Ultra ETFs such as the UDOW ETF.
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