Profit Taking Strategies for Traders: Setting Price Targets (20 min)

Learn how these practical strategies for setting price targets can help focus your trading on maximizing potential profits.

Profit Taking Strategies with Trader Mentality (20 min)

Learn to think like a trader and put profits first with these guidelines for managing trading and maximizing profits.

Risk Management for Traders (15 min)

Find out how putting these simple strategies to work could help you cut losses and protect potential profits.

Risk Management: Techniques for Setting Stops (20 min)

Learn the basics of various stop placement techniques, as well as practical applications for putting them to use in your own trading.

Risk Management: Help Protect Profits and Limit Losses

Learn how your trading could benefit from applying a consistent risk management strategy.

Best Practices for Trading in Volatile Markets

by Randy Frederick

These eight simple steps could help keep your trading on track, no matter how volatile the market may be.

  • Trailing Stops
  • Help protect any potential profits you might make by setting trailing stops that are automatically triggered if the price drops too far, too fast.
  • Launch demo
  • Bracket Orders
  • Take greater control of your trading and help protect your positions by defining your profit and loss targets when you enter the trade.
  • Launch demo
  • Conditional Orders and Alerts
  • Stay on top of every price move automatically to protect your positions, enter or exit a trade and much more.
  • Launch demo

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Multiple-leg options strategies will involve multiple commissions. With long options, investors may lose 100% of the principal invested. Spread trading may only be done in margin accounts. Please read the Options Disclosure Document entitled "Characteristics and Risks of Standardized Options" before considering any options transaction. Call your local Schwab office, or write to Charles Schwab & Co., Inc. at 101 Montgomery Street, San Francisco, CA 94104 for a current copy.

©2009 Charles Schwab & Co., Inc. All rights reserved. Member SIPC (0909-10727)

Exchange-traded funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. Investments in foreign investments may incur greater risks than domestic investments. Past performance is no guarantee of future results.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Strategy testing past performance data should not be construed as indicative of future results.

The Trailing Stop feature should not be confused with the Stop order (order type). All alerts with Trailing Stops or other conditional orders will be entered as a Market or Limit order types (same day only).

Restrictions apply: The $8.95 flat commission does not apply to foreign stock transactions, large block transactions requiring special handling, employer negotiated commission schedules applicable to equity compensation transactions, or restricted stock transactions. Foreign ordinary shares that trade online in the U.S. over-the-counter (OTC) market and do not settle in the U.S. will have a $50 foreign transaction fee added to the cost of the transaction. All broker-assisted and automated phone trades are subject to service charges. A minimum deposit of $1,000 is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. Employee equity compensation transactions are subject to separate commission schedules.

*250 free trades expire 90 days after account approval. Applies to base online equity, ETF and option commissions only. Option per-contract fees still apply. To qualify, you must commit to making a minimum of 36 online equity or options trades per year and deposit $100,000. Other commission-free trade offers may be available if you deposit less than $100,000 -- call 888-245-6864 for terms. Free trades will be assigned at account opening. Account and assets deposited must be new to Schwab. Current Schwab clients and households are not eligible. Please see the Charles Schwab Pricing Guide for detailed information. Offer valid until 6/30/2011. Offer is nontransferable, limited to one per household, and may not be combined with other offers. Accounts ineligible for this offer include, without limitation: 401(k), 403(b), Custodial, 529 Plan and Estate accounts. Unlisted foreign ordinary stocks are not eligible for this offer. Only trades placed through Schwab.com, StreetSmart Pro®, StreetSmart.com®, or Schwab Wireless are eligible for free trades. No credit will be given for unexecuted trades. Domestic, nonprofessional accounts only. Schwab, Schwab-affiliated, broker-dealer and exchange employees are not eligible. Other exceptions may apply. Schwab reserves the right to restrict this offer at any time.