How to Set and Manage Stops with the Wave Principle

Identifying a high-confidence trade opportunity is just the first step of the trade. One of the most important aspects of trading is trade management. You need to know where you are wrong so you can get out, and you need to learn to manage your winning trades. Learn to set and manage your protective stops in this free resource.

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Trade Management is Key

While the Wave Principle is not in and of itself a trading method, you can use the three rules for impulse waves to determine where to place your protective stop. In the first lesson of this free resource, Jeffrey Kennedy reviews these three rules and then shows you where you should place your initial stop.

Next up is a video, How to Find and Capitalize on Elliott Wave Opportunities, from Jim Martens where he shows you what he looks for on a chart to find an opportunity. You'll see where he likes to place his initial stop, when he moves his stop to manage risk and protect gains, and at what point he exits the position.

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Meet Your Authors

Jeffrey Kennedy

Jeffrey Kennedy Chief Commodity Analyst

Jeffrey Kennedy, MSTA, CFTe, CMT, CEWA-M, draws on more than 30 years of experience as an analyst, teacher and trader. He was an adjunct instructor for five years in the Quantitative and Computational Finance program at the Georgia Institute of Technology, where he taught technical analysis. He also co-authored the 2013 book Visual Guide to Elliott Wave Trading. Jeffrey provides video forecasts and analysis for EWI's Commodity Junctures Service on a Daily and Monthly basis. He also produces video lessons for EWI's popular Trader's Classroom, an educational service that shows subscribers how to trade with wave analysis and supporting technical methods, as well as the newly launched Crypto Trader's Classroom.


Jim Martens

Jim Martens Chief Commodity Analyst

A 35-year market veteran, Jim Martens has taught Elliott waves at dozens of trading seminars around the world and has always enjoyed interacting with subscribers. Jim began his study of R.N. Elliott’s Wave Principle in the mid-1980s, which led to a position with Sabin Commodities at the Commodity Exchange Center in New York. He joined EWI in 1993 and soon became the editor EWI’s Currency Outlook of our Currency & Commodities Forecast. In 2000, Jim accepted an invitation to join Nexus Capital Ltd. as their Chief Technical Analyst. He returned to EWI in 2004 to lead our FX and cryptocurrency teams. Jim now runs our Commodities Pro Service and Commodity Junctures.