Stop Loss money management multiple entries FOMO

Trading Discussion
1

Hi all, I got stopped out (Again) GBPUSD yesterday ?

I was long at 1.4001 and had SL at 1.3925 - double bet so 2% of account balance.

Now this happens so regularly, that I’m beginning to get a complex that “It’s after me” ! :laughing:

It is now “consolidating” around the 1.3935 level and my inclination is that it will go back up. So I am in again at 1.3937 with 100 pip SL

However, this is a problem I have always had “In too early - out too early” (Fear of Missing Out?) - So I’m thinking of dividing my Bet into multiple parts - say 10 although that is not decided yet.

The principle will be that I take 2x 10% (of teh 2%) bets at my normal entry criteria, then place another 1/10th at every 10 pips the price moves against me - each with a SL of the same number of pips as my first, irrespective of Support Resistance etc. SO my last entry would be around the same price as my first was getting “Stopped out”

This, as I see it would have the effect of reducing my exposure as a “Trend” was being cnfirmed and giving me better entry positions if the price went against me towards my original SL.

Total risk would be about the same as it is currently, but if my bet was “Proven right” in the eventuallity, then I would be “punishing the market” (joke) for going against me, instead of it “punishing me” !

Currently I am “Trading positive” even accounting for these annoying events, and often I am there or thereabouts correct in my entries, so the other danger is that IF I am right, it will wander off in the “Correct” direction wiith only 20% of my normal size and thus profit on Good bets would be reduced significantly.

As I type this I am feeling that it would be bad to “Lose” so much potential profit ! However, the other side of the argument revolves around smaller losses through being stopped out and also better profits from better price entries.

I just thought I’d throw this up in the air for discusion, to see whether others have the same problem of getting stopped out only to see the price move away into waht would have been profit without them, and what if anything can be done about it.

Whether in fact others take a “scaling in approach” like this ?

The floor is now open for comments and suggestions

2

I think you hit the stop loss again. First tell me on what basis you took a long position @ 1.4001. Do you have any explanation? I think price should go up is not an entry criteria. At least you should check support and resistance level. Even there wasn’t any such candle also. Different entries will not help you unless you know why you are taking the entry.

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Thank you for trying to help mate, I do appreciate it, but I have t wonder what timescale of chart you are looking at ?

The fact on my re-entry was that I got another tiny entry at 1.3927, as per my orginal post, then it started dithering again and that was not in line with my expectation, so I closed both parts for a loss of 0.2% with the second making a slight contribution to reducing the loss on the first. It was a poor bet and I was in many ways lucky to get out with my vest intact !

In answer to my own question up there, I don’t think that will become a regular part of my strategy, taking bets in what can only be described as “No-man’s land” feels both silly and very odd at the time. I think I may try it again on the “Original entry” scenario, but certainly not on a re-entry !

The real answer is to get my damn stops right in the first place. :grinning:

Perhaps with a singe position and hold one in reserve for a better entry level - dunno - we’ll see.

However, nothing would have saved my orginal trade, if you’re wrong, you’re just plain wrong ! :laughing:

1 Like
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Welcome to the trading world. First complete Babypips school. Secondly read quality books on trading. Not just the books with different strategies. Read also about discipline and psychology. Observe charts a lot. Choose a single pair. Try to find different candle patterns. You will find some unique characteristics of the pair. Make your own strategy.

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Thank you for your welcome Ferdous, much appreciated.

I have tried to do a little reading mate - anything else you would suggest ?

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DSC_5363.JPG3872×2592 3.21 MB

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In fact I’ve been thinking of selling a few :laughing:

6

Hello Falstaff

I know alot of bp members would disagree with me, but im a fan of averaging down under the right circumstances.

A possible problem with your plan is the additional cost you would have to pay because of the spread.

Maybe 4/10 for the 1st entry and 6/10 for the 2nd entry would be better instead?