hello

[brewski1984]

Ok I'll try some different questions lol

Regarding stop losses, I was just wondering how tight of a stop loss I should use? I know that i should work this out for my own system but I would like some advice. A lot of the trades I have done ive used stop losses of maybe 25-30 and it seems that for most of my trades it will go maybe 10points over this and then end up going into a profit. Is 30 point stop loss too tight?

The other thing I have noticed is that I'm already doing the classic taking small wins and big losses, any advice on how to get round this? It gets really annoying that I let losers run and they just keep going into a bigger loss but if I let winners run they don't do the same, 2 or 3 times I've been 25 points up, thought I'd let it keep going as I was winning then I've proceeded to either take a smaller profit, get out at break-even or i stay in and it hits my stop loss. Any advice on how to change my psychology on this? I have managed to lose in both directions on the Ftse the last couple days for 85 points, only small stakes luckily though!

Thanks guys

 

[coopster]

I understand that buying support and selling resistance is the thing to do

Obviously, if the uptrend is clear, then don't go short. Buy the bounces from supports and hold on til the next resistance area. Stop under the support line at first with money management determining your maximum loss.

You could try exiting half your position at a reasonable profit level and moving the stop to BE. Then letting the rest run or hit your stop. This attempts to calm both the devils on your shoulder of fear and greed. One gets a bit of money safe, the other is not so worried as the risk is reduced.

I'm guilty of the same things i must say. Somehow taking a large loss is psychologically easier than going into profit and giving it back? I find it tends to happen most when the first trades are losers and any profit is attempting to recoup some of the money back. Its a sign that i shouldn't be trading as i'm not detached from the financial value of the loss.

 

[brewski1984]

Yeah i guess that makes sense by only entering trades in the direction of the trend, everytime I was setting up the sell orders for resistance I was thinking this is surely going against the trend and that breaks one of the most important rules of trading! I may take your advice on exiting half the position, I have spent the last few days tweaking my trading plan a little as I feel I veered a hell of a long way from it recently.

You're right about taking a large loss being easier than giving profit back. I recently did probably one of the worst trades possible, resulting in a 70 point loss. It had absolutely nothing to do with my trading plan yet it didn't actually bother me at all, i just shrugged it off as "you win some, you lose some". However, I have done a few trades where I've been say 20 points in profit and I'm thinking this is great I'll let it run and run into hundreds of points profit and a few minutes/hours later I've either got out at breakeven or out of frustration just let it keep going and got stopped out for a 20-30 point loss. Those situtaions really annoy me and I end up considering giving up trading every single time! I guess that's one of my main weaknesses.

Thanks for your post, It's much appreciated.