Disliked{quote} Love your trading! Really good discipline. Can I ask however how you have profits on open trades locked in? If Sunday night opens with a big gap down (probably unlikely but alway could happen) then your SLs don't matter. Am i missing something?Ignored
1. You Have a Long Position:
- If the market opens below the stop loss on Sunday afternoon, then the position will be closed where the market is opened, not where the stop loss is set, and so, you will lose the stop loss plus the difference of the stop loss and the market open level (outrage).
- If the market opens above the target, then your position will be closed where the target is set, so that you will not gain more than your target (outrage).
- If the market opens between the stop loss and entry, then the position will remain open until you close it, or the price hits the target or stop loss while the market is running.
- If the market opens above your entry and below the target, then it will not be closed and will remain open until you close it, or the price hits the target or stop loss while the market is running.
Does It Mean that You Should Not Hold Your Positions and Pending Orders During the Weekends?
This is what everybody may think. If we hold our positions during the weekend, and the market opens with a big gap against our position, then our loss will be much bigger than our stop loss.
This is true, but the good news is that if you enter when there is a “strong setup”, then in most cases the weekend gap will not be against you, and will be in your favor.
The problem for me, if I rely on major news events all the time I will never trade.
There has not been significant market gaps since April 2017 and if it happens, then I have to deal with it.
Simple edge and take care.
Cheers.
Trade to trade another day
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