My problem is that I find myself more too often than not, placing the stop at BE for "runners" after taking the first profit, to only let the stop get hit and then price resumes the favorable direction. It's a lot to do with patience *sigh*
The following user says Thank You to Hapster for this post:
Moving a stop to BE may have worked in the past but my experience is the same as yours. It doesn't work right now. So we have to adapt. I do not do BE stops until price goes far enough in my direction that if it came back to BE I definitely want to be out. And 9/10 I will close out the trade myself if it retracts 50% of the move from my entry. I don't want to give back more than 50% of my profits.
On friday I got into a long trade and had to go to dinner (dinner here is around noon in the US) so I couldn't manage it. SO I put a BE stop and it was hit. I was bummed cause I gave up around $700 in profits but I couldn't manage it and had I taken profit, it could have closed on the high.
Yesterday same scenario. sellers came in around noon and this time I was up around $700 and I let it get to +200 and I closed the trade. I ended up about 6 pts below my entry so I was good to get out.
Tomorrow I may get out with a few hundred and price may go up several thousand.
this is, IMHO, the hardest part of trading. Entries are easy. knowing when to get out and not leave too much on the table and not try and grab it all..
so in summary, I don't do BE stops unless the trade is way in my favor. be stops around breakouts are almost always taken out. this is my issue with Joe Ross's trading method from his old books. It may work on a daily chart I don't know (doubt it) but it doesn't work intraday.
so you can try BE - your first target. If you hit +10 then try BE - 10 so you have a no lose trade. Or just go all out at once, which is what I'm currently doing.
good trading to you.
The following 4 users say Thank You to cunparis for this post: