Stopped Out Like Yesterday
September 27, 2006 by Trader Rich
See yesterdays frustration post! I went short on the GBP/USD with my stop at 1.8951. The bid high reached 1.8951 this morning before doing the exact same thing as yesterday and declining. My profit targets would have been hit. 2 days in a row. The good news is that at least I lost less on this trade than yesterday's. The bad news is it looks like this trade would have been more profitable than yesterday's. Right now it would be a 130 pipper.
Is my stop loss too narrow? Do I need to increase my risk by widening the stop loss? I think I have to re-think my stop loss strategy. Things could be worse I guess. My strategy was "narrowly off" in what could have been two profitable trades. I know it's easy to say "what could have been" but I did get the direction right.
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i missed that trade this morning on account of plotting my pivot points on another charts..i was anticipating that move 4m yesterday..neways dont feel bad..losses do happend..but if u get another loss for the week i think u should give the market a break and go play golf or sumthing to cool off cuz u could be subconsciousy transfering fear and anger between trades.
thats just mt 2 cents. sorry to hear of ur loss 2.
looks like your stops on those last 2 trades were inside the Asian range tops……..
it’s up to you of course where you place your stops, but if you’re executing on the basis of a prev range (Asain or otherwise) barrier, maybe think about where the “real” dangers lie in relation to price wiggles?
you’re looking to test the ‘intent’ of price & whether or not the genuine direction still remains valid?
so, where (if you were a broker or bank operator) would you sling prices in an attempt to collect weak hands stops or order builds?
I sure as hell wouldn’t be too bothered bout observing some mov avg or arbitrary trendline.
I’d want to sniff out a line approaching a prev range top/bottom to catch out a bunch of trailing stops and/or scared money punters??
food for thought?