From Swing Trading & Momentum Trading AlpeshPatel.com Making Money By Not Losing Money AlpeshPatel.com “The Trouble With A Loss Is Not Only The Loss Of Money, But Also The Loss of Ego.” Pat Arbor, Chairman Chicago Board of Trade – world’s largest derivatives exchange  How find the initial fixed maximum stop loss?  Method Average Range  How find the initial fixed maximum stop loss?  Method: Average True Range (ATR)  SL= 2 x ATR. Fixed At Entry  Because it is not ‘noise’ if 2 x ATR  How find ATR?  Use ATR indicator 2 x ATR = 2% of Total Risk Capital 3 x ATR = 2% of Total Risk Capital