New York NY USA
Experience: Intermediate
Platform: esignal, thinkorswim,
Trading: Stocks
Posts: 122 since Oct 2012
Thanks Given: 63
Thanks Received: 35
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Currently, the only thing I trade is the emini s&P. I normally open a position with a least a 3 point stop loss. Sometimes a bit more. Most of my setups are good, but I know that I need to wait sometimes for the market to come my way. ( not that I am not often wrong also. But so far things seem okay)
The hardest moments for me are when my position has turned profitable and I need to think about moving my stops to protect profit. I really hate lose money on a trade that was already profitable. But on other hand moving it to quickly can get you stopped out early. With a small profit yes, but you often miss the longer run.
I mean if the trade is good for 1 point and I move my stop to where I secure .25, I am almost certainly going to hit my stop in normal fluctuation. If the price runs I will not see it. But on the other hand .25 is better than a poke in the eye.
There probably is no hard rule for when to move the stop to profit level, or when to exactly to cash. But I do wonder how others have resolved this difficult stage when the trade has just turned profitable.
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