Setting a stop loss is one way we interact with the market other than opening and closing positions.
My question has to do with altering the stop loss once one is in profit (say initial stop loss was 50 pips, and one is now in profit by 50 pips). Should one always set the stop loss to break even, or try to perform technical analysis to determine where the price would hit that would signal the trend is reversing?
One thought I had was that setting the stop loss to break even may not be the best idea because it could hurt your edge, especially if your system is trying to go for 100+ pip wins. But for psychological reasons, the break even point is very good. What are your thoughts?
My question has to do with altering the stop loss once one is in profit (say initial stop loss was 50 pips, and one is now in profit by 50 pips). Should one always set the stop loss to break even, or try to perform technical analysis to determine where the price would hit that would signal the trend is reversing?
One thought I had was that setting the stop loss to break even may not be the best idea because it could hurt your edge, especially if your system is trying to go for 100+ pip wins. But for psychological reasons, the break even point is very good. What are your thoughts?