Traders Laboratory - View Single Post - What is your strategy when a trade goes against you
Thread: What is your strategy when a trade goes against you
View Single Post
  #5 (permalink)  
Old 05-21-2007, 01:58 PM
cooter's Avatar
cooter cooter is offline
cooter has no status.
Banned

  
Join Date: Mar 2007
Posts: 634
Thanks: 0
Thanked 4 Times in 2 Posts
Re: What is your strategy when a trade goes against you
Quote:
brownsfan019
 View Post
I am option #1 as well. There's no point of placing a protective stop if you have no plans to honor it. When you are wrong, get out. You can get back in when the time is right.

Now, with that being said, I think stop placement is key here as well. If you have a stop that is routinely being taken out and then the trade moves in your favor, you might need to adjust your stop placement methodology.
Which also means that your entry might be suspect too. And thus your trade setup might not be truly valid.

Risking 4 points on a stop to earn 1 point won't make you much $$$ in the long run, will it?

Reply With Quote