[Soultrader]

From a technical perspective, if I think my analysis in terms of short term direction stands correct I will first see where is the absolute stop level that will tell me I am wrong. If the risk is within my risk tolerance level, I will add to my position and scale out a portion at my first entry point. This allows a break even trade to become a gainer.

Obviously if I am stopped twice, it will hurt. But I have turned potentially losing trades into winners alot more often than the times both positions go against me. The principle for me is timing. If my timing was off but I sense my initial market direction is right, I will add. If the position goes against me and I sense a shift in market sentiment, I will take the loss and move on.

I tend to use extremely tight stops so a little heat is something I can take.