Opening Size Closing P/L
1) 1528.60 +£10.00 1520.15 £-84.50
2) 1521.25 +£10.00 1517.75 £-35.00
3) 1519.25 +£10.00 1517.25 £-20.00
4) 1518.75 +£10.00 1516.50 £-22.50 (Stop moved up and was hit on retrace after being in profit)
5) 1517.85 +£10.00 1515.90 £-19.50 (Stop moved up and was hit on retrace after being in profit)
6) 1516.75 +£10.00 1515.25 £-15.00 (Stop moved up and was hit on retrace after being in profit)
7) 1517.75 +£10.00 1522.50 £47.50 (closed this morning)
The market likes retracing just enough to take out my stops and as a result I ran trade 7 overnight without a stop
I would rather have woken up to my account being down £500 than to have another stop taken by stop hunters
I know, this is bad practice and bad trading. I am still practising and emotions, unfortunately, are still prevalent in my trading. I won’t be placing trades outside of cash markets anymore either, something I said I wouldn’t never do from the beginning
hmm, always a tricky one. What are you trying to achieve, or whats your time holding approach to trading this? I mean are you looking to hold for a intra session positional trend? ie 20 + bars in your timeframe ? Or are you just looking at buying and selling volatility and coming out on the thrust for example .
Heres what I think on trends, no matter what timeframe , has the trend changed ? if not, why do i want to stop my position? o.k. valid reasons might be, profit objectives hit, you cannot watch any longer (have to go out etc) , your knackered. Or you realise you have screwed up reading the trend. (hopefully we improve continually on this so we become more expert over time experience etc) Also, what I think a stop is a disaster stop, likely to be roomy, not because we are rubbish at reading trends, but in case the price springs to a level that would be jaw dropping, leaving you think ,what the f. likely sudden news based. F that i'm off. (short term, pile in to blow out stops traders, I would think would use tight ones. Both ways, stops done, back through)
now if we use a
fixed point stop, and depending on our entry (expertise ) in the trend, then theres a fair chance that it will be tested. Or if the stops are getting hit.
Maybe a quetion to ask is. Am I trading against the trend? (sentiment trend) If not then, hows my entry look ? rough, good, I mean I think the lowest risk in a trade of the trend is the first entry, but that may depend on waiting for a value price. I dont always wait, especially if im reversing, this frequently sees the trade go against my position, I know this, but if i read the trend is still as I perceived it, then I do not want to lose the position, but I have to allow a bigger draw, because of not waiting for a value entry. (you could add a second? ) never add to a losing position though ? well yeah but if the position is needing to be long, and you get value, then you could argue you will take advantage of the cheaper price, and average your entry between the 2, to be positioned for the correct trend.
Think im answering my own puzzle as what to do when reversing, but wanting to be positioned, when the market looks like springing, Need to be in, but it may not be on that occassion value as I would like it, not to worry, scale in, and average down if the value entry comes. Obviously first entry if not value, adjusted smaller size, prob.(ignore this, its just me thinking on my own niggles, not decided either way but its an option)
Anyway quickly eyeballing your stop hit on retracement numbers, had the trend changed to warrant you stopping it, by use of a fixed stop or not, or ,was the price just retracing but the trend was still according to your perception?
You see what I'm looking at, trend still in tact ?, why are you/we stopping our position?
Now heres another tricky one, if we are still learning to read sentiment trends, intent, and price in relation to it then its fair to expect we will likely suffer greater exposure to "making a non profitable or incorrect trade" . The answer, more study.
I realise Ive used the word
incorrect trade implying I think theres a right way to trade. i think there is but its so bloody subjective. But the market will tell you, or your results will, if you are trading the right way. The results are pretty objective.
Just some idea's, I'm still learning and learn the hard way
.
Maybe what should rattle in our heads at all times, is whats the trend now? and look to take a favourable position in it. Or look to exit when it changes,if objectives (fixed or dynamic) not already met. But we have to forget ourselves and be honest with what the markets telling us, when we can see it. And that can be a ball ache too.
Just my view of things to date.
Keep the faith.
