Traders Laboratory - View Single Post - What is your strategy when a trade goes against you
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Old 05-21-2007, 02:22 PM
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Re: What is your strategy when a trade goes against you

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Which also means that your entry might be suspect too. And thus your trade setup might not be truly valid.
I disagree. If your method says to enter based on XYZ, then you enter based on XYZ. We can't say the a setup is not 'valid' if you enter your trade based on the conditions you set. If your conditions are met, then that's a valid trade regardless if it's the greatest entry point possible. The point I was making was that the protective stop placement is very important, esp at the start of the trade. Reason being that many traders are too eager to place an initial stop too snug (since that provides comfort knowing you are not risking that much) or moving your initial stop too quickly (for sake of protecting that little profit). I constantly have to monitor my stop movement b/c I am eager to get that stop moved so that I can't 'lose'. Well, if you get ticked out of a trade that is a winner, you just 'lost'.

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