The success of chart-oriented trading is critically dependent on the
effective control of losses. A precise stop-loss liquidation point should be
determined before initiating a trade. The most disciplined approach would be
to enter a good-till-canceled (GTC) stop order at the same time the trade is
implemented.
—Jack
Schwager, from
Schwager on Futures: Technical Analysis (1996, John
Wiley & Sons, New York).
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