Do you ever move stop-loss to your entry while losing? Suppose price went in the opposite direction but your stop still holds. Then it formed a new swing point went in direction to your entry and formed some kind of a reversal candlestick like engulfing, shooting star or long-legged doji. What is the most reasonable thing to do?
dbphoenix
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Exactly! (if you trade to make money)
So if it's a losing trade you don't move stop, you just close it straight away
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My stop was at the nearest swing high, price formed a new swing high between my stop and entry. So I have an option to move my stop to the new swing high(I was in short) in order to cut loses. At the same time it increases the probability of losing potentially wining trades. Right now I move stops only when profiting. But it would be nice to know if there is a way to reasonably move stops while losing.
Yes, if in a short trade and price made a new swing high above my entry but below the previous swing high I often move stop down to the new swing high - but only after it is confirmed as a swing high (by price moving down again) in the same way as you confirmed the higher earlier swing high.
A more aggressive approach (which I don't often do) would be to add a second short after confirmation of the second swing high so that your total funds at risk remains the same amount.
NVP
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Why not consider splitting your trade into multiple contracts .....you can take money on the initial profit move and allow yourself the luxury of letting the retrace fall all the way back to entry still on on b/e if needed.....
N
