FOREX TRADERS

[Capitalist]

Wait, whaaat are they saying??

If I buy 100 shares of a stock for $1 each, then I have a $200 trade. I could put my stop at 50 cents which would be a "$100 stop." How could I raise that to $500 when my maximum possible loss is only $200?

Any discussion about "raising the stop from $100 to $500," is meaningless unless you know the trade size they're talking about. Moving the stop from $100 to $500 on a million dollar trade is negligible. Doing the same thing on a $1000 trade would be a huge change in strategy.