Hi,
What are your experiences with a trade that goes against you, looks about to
become a loser but still hasn’t hit your stop-loss?
You exit, decreasing your losses or leave it be, since it might go your direction again.
Both ideas seem to be fine, but I wonder what the average result will be in the long run.
Of course it depends heavily on the strategy used, but I’m talking your average price action, MM 2% risk, RR 1:2 strategy.
Who has experience?
In my very first demo account I set an sl. Then the price came along that sl but didn’t hit. I got emotions and closed that trade at all. After that, the price jumped up far into profit zone without hitting the stop.
Lesson from this: Saved a chance of 10 pips or so with a 300 pips loss and lost a chance of 300 pips. Since then I would not any time change that anymore, as long as the specific trading system will not ask for it. Never ever.
The way I was taught was to place the stop loss after trade entry and leave it alone.
Even with a SL in place your strategy should help you scale out of positions early by identifying possible reversals to minimize your risk.
I would just say you have to stick to your trade plan. if you find your SL is getting hit without broker games, it’s time to change your trade plan. you cannot be afraid of the market because it’s certainly not affarid of you!
Minimize risk or loss?
I would do that only if price had successfully broken above resistance above my entry price.
If price never broke through resistance, I don’t see much point in moving your stop. If you placed your stop at a logical level, instead of some random X pips away from your entry, then its likely that price will bounce or respect that level, however minor, giving you more time to consider your position. What else is support and resistance for besides reliably depicting where price will find weakness?
Stick with the plan, which is how much we decide to lose per trade. If we so particular about USD per pip, it will damage the whole plan. Must be patient. After all, we could enter another trade if we catch another good trend. However, if we really know what we have done wrong, quickly close it, however, not at the long end of the candlestick, but perhaps middle.
I exit if it looks to go against me. If trade turns back in my favor as it occasionally will, I re-enter the market. No sense on taking the added loss if it’s not needed. This has resulted in an increase in profitability for me overall.
if you could calculate the lose that you would play, then stick with the strategy. If you have not plan anything, you would probably exit at the longest when the candlestick is formed.
I’m still developing a trading system with 3 systems, reverse trend, continuous trend, and forming a trend. Not all indicator can be used for these 3 systems.
Because each target profit is different so with the stop loss. Watch out for my forum.