So i there are different ways of setting a SL some make it x number of pips from entry some put it at previous candle high or low for example.
Let’s say your trade is in the red and SL is about to be hit. Would you move it out of the way or just let it hit?
You 100% just let it be hit as you put your stop there for a reason. It’s at that point that your initial trade idea is invalidated.
Let’s say you move it, what’s to stop it going further in the red? ‘Hope’ certainly isn’t going to help you. Then it gets closer to your new stop, what then? Do you move it again? Before you know it, your account would be gone.
You need to draw a line in the sand somewhere & that somewhere is your stop. You can NOT win every trade & you need to be able to put your hands up & say, “Okay, that trade was wrong” & wait for the next set-up. Being able to accept a loss is an absolute must.
Yes i do, if i think i ve not placed it right, and i do make sure that my prediction is right, otherwise i dont move it.
You dont say, Captain Obvious
lol, Just messin bud.
This is the most important thread on maybe the first 100 pages in this forum…
DONT MOVE YOUR STOPS, You Put them there for a reason…
Why do I say this? Because Im the idiot that does it, and I pay for it, literally.
Hellllllooooooo, lol…
Hey, its not easy. Lets move it to here, DOH, Lets move it more, DOH, Lets , o wait, im margin called, never mind.
Without deciding in your stop-loss position, you can not trade the correct position size. If you are in the red & you move your stop further away then your risk is greater & you are no longer trading according to your plan.
I can add some experience from my trading. Before I moved to automated trading, I trade mechanical systems and in these situations, where I thought, that market will do more corrective wave, I wrote on paper: move SL to xy… and then analyzed it. Better was trading according to my plan, not what I thought.
So, trade plan, not your emotions. And do not cover it behind “new analysis”, because that is one of the way how your emotions control you.
You can move or adjust your stop loss only to protect your profits.
I had this habit, I even didn’t use any SL at all and lost several accounts but now I’ve improved. I set my SL and I only move it to BE or to lock some profit, I don’t change it un-necessary.
The real problem is when we seeing a trade going to hit SL and we want the price to go back somehow but it is not in our hand. What is in our hand is to move SL a bit further so that the trade get some air to survive and find a S/R level to go back.
[QUOTE=“service;736646”]The real problem is when we seeing a trade going to hit SL and we want the price to go back somehow but it is not in our hand. What is in our hand is to move SL a bit further so that the trade get some air to survive and find a S/R level to go back.[/QUOTE]
No, what is in your hands is to accept that you were wrong.
You should never change your trading SL as it breaks your trading strategy and after first SL change next will inevitable occur. Trading is about very strict money management, every additional pip lost (or gained) force you to make a row of change which can easily create confusion…
When I was new to trading I would change my SL as the price action got close, but it is not a good idea at all.
It’s basically the equivalent of a ‘double or nothing’ gambling style. What you really want to do is figure out a system that helps you figure out the optimal stop loss positioning and then stick to it.
Developing a disciplined approach is key in trading.