How often does this happen to you?

[aparoid89]

As you can guess, my stop loss was quite a bit below support and my take profit was just below resistance.

 

[Vicorka]

There is no way to avoid it. Your stop is filled at market available price. It is still good if the down move continued. Much worthier is when market is down at the opening, your top-loss is triggered and then it recovers and even closes green, yet, you out of the game.

 

[NVP]

Sorry - I cant read the time date properly

avoid thin markets / intruments , openings, Closes , news events....basically anything that triggers high volatitlity and the broker widens spreads and lets the price run up and down

if you get this a lot change brokers - they are screwing you

N

 

[Shakone]

Am I correct in assuming you didn't get your profit, it reversed just short and took out your stop?

Sorry to disagree with vicorka but there are many ways to avoid it. Risk:reward is not static. When it is approaching this resistance, and nearly there, what is your risk:reward? If below that support line, then your risk:reward at that point is awful. And when you have awful risk:reward ratios, then you usually win, but when you lose, you've given up a large chunk of change.

 

[Vicorka]

Sorry - I cant read the time date properly

avoid thin markets / intruments , openings, Closes , news events....basically anything that triggers high volatitlity and the broker widens spreads and lets the price run up and down

if you get this a lot change brokers - they are screwing you

N

This is good for intraday trader. Such drop is not munificent for longer-term traders. I think he holds position 2-10 days that is why it hurts so much.

 

[aparoid89]

Am I correct in assuming you didn't get your profit, it reversed just short and took out your stop?

Sorry to disagree with vicorka but there are many ways to avoid it. Risk:reward is not static. When it is approaching this resistance, and nearly there, what is your risk:reward? If below that support line, then your risk:reward at that point is awful. And when you have awful risk:reward ratios, then you usually win, but when you lose, you've given up a large chunk of change.

So should I use a trailing stop?

 

[Shakone]

Not necessarily, but you take the initial trade, it goes in your direction. It is perhaps 5 pips away from target, then by all means wait for it to hit the target, but don't leave your stop 100 pips away just to get 5 pips. That's madness. Make sense?

 

[rawrschach]

Ridiculous to let your trade go 98% of the way to your target then take a loss on it.

that trade went through at least 3 resistance levels before turning just short of the last, that's at least 3 opportunities to move your stop.