CBL and how to move it. (Educational)

This will be the last educational for awhile, because I still have to monitor my personal stocks, tsp, and post tsp updates. Someone ask this question, “How does the CBL move or when do you move it.” If you have not read the CBL Educational Post, please read this first, CLICK THIS.

Ok, there will be 11 pictures with notes and sometimes I will add additional information if I feel you need it. Whoever asked the question, has a question, feel free to ask and I will do my best to answer. Sometimes it is easier to do in person, so find me if you can.

Above is day one of ownership in a stock and it’s name doesn’t matter. Once your in, you must set a stop loss which is also known as a CBL. On the day of purchase, you purchase price doesn’t matter, it is the lowest trading price of the day that matters. That is where we start the Count Back counting. Draw our first line and move up with price for here forward. So it should be easy to understand here that we are limiting our loss day one with this line in the sand. The issue for every new trader is selling for a loss. It is not fun, but it must be done no matter how bad it hurts your feelings. If you cannot do this, STOP reading now and go back playing video games on your phone or ipad. Now day 2.

Hope his helps.