After your stop loss is filled, have a buy order waiting in case it goes back up again. Is there a way to do this? Or is it a really unnecessary feature?
Your concept of what a stop-loss is, and how it should be deployed, must be different from my concept.
Here’s my concept. I’ll use your example of a LONG position which gets stopped out.
[B]1.[/B] I enter a LONG position because my analysis indicates that the price will rise.
[B]2.[/B] I recognize that I [I]could[/I] be wrong. In fact, I [I]am[/I] wrong 40% of the time.
So, I choose a price below my LONG entry, at which I believe it will be clear that —
• the market is not behaving as I expected
• my analysis was wrong
• my LONG position was a bad idea, and
• I want out.
I place my stop-loss at (or near) that price.
[B]3.[/B] My stop-loss gets hit.
If [B]2[/B] (above) is true, [B]why would I double-down on a bad idea[/B]
and get right back into that ill-advised LONG position?
[B]4.[/B] My LONG trade has failed. Forget about it. Move on. Look for a more promising trade elsewhere.
.