Maximizing profits with stop orders: The Wyckoff method of trading stocks part 11 by Jack K. Hutson
No matter what technical system you use, the first rule of successful trading and investing is: Cut your
losses short. No one believed more firmly in this sage advice than Richard D. Wyckoff.
"No one can trade or invest without losses," he said. "Danger is present in every trade, whether it be for
investment or speculation. In the stock market you must be constantly on your guard: Always be
expecting something to happen."
Stop orders, in Wyckoff's view, are the mark of a professional attitude that acknowledges the ability to
falter and the wisdom of money management. Stop orders also are an aid to judgment, allowing the trader
and the investor to operate with less concern and more mental