Let's talk about 12 pip stops compared to 30 pip stops. It has nothing to do with the stops and everything to do with the entries. We've all heard buy low, sell high, but we hardly ever do it. Instead, we get in at the top and close at the bottom.
Looking at the attached chart, you'll see I've made a huge mistake. I didn't get in at the bottom and ended up with a 30 pip stop instead of a 12 pip stop. The stop would be at the same price no matter if I entered at the right place or not. That's kind of the point. But now, if gj moves 30 pips, assuming I'm using a 1% risk to the account, then I'm getting a 1% move/reward, but if I had used the same 1% risk to the account and went in at the right place I would be up 2.5% thanks to a 12 pip stop and more lots.
With the stop at the exact same place, where would you want to get in? Would you want to risk the same 1% and make 1% or 2.5% on every 30 pips the price moves in this trade? Also, if I had entered correctly, I would already have closed half the trade and have a free trade. Ugh!
in chart below i should have gone long when price was held by the moving average (the purple line) on the 1 hour chart and pushed up. Instead, I got in 20 pips late. And, it appears it was not only too late, but it may be where a short should have been taken instead; making this a painful trade to watch. yes, i forced the trade. The punishment? I need to close the trade at break even if given the chance or take a loss. However, I'm not going to take the entire 30 pip loss. That would just be foolish at this point.
Also note the yellow line in the sentiment indicator on the 1 hour chart. It's too low to allow a short. Price needs to basically go sideways in a range for a while for that yellow line to ease it's way up toward the 50 and allow for price to move down below it again for another short. This, along with the fed news in the afternoon, may be why gj is quiet during Asia today (or vice versa).
Thankful to get out with 1 or 2 pips each profit.
BUT NEVER GIVE UP, NEVER FEEL SORRY FOR YOURSELF...FIGURE OUT HOW TO FIX IT!
I bought more at the bottom!!! and am up 25 pips each on those with correctly placed trades and a 15 pip stop.
I was so excited that that trade worked out that I messed up immediately (probably should have taken care of my trading before posting on here) and forgot to close 2 or 3 of the 5 trades to cover my stop loss. thankfully, price never hit the stop, but it's pretty obvious I need to close, take the profit and stop trading for the day.
Looking at the attached chart, you'll see I've made a huge mistake. I didn't get in at the bottom and ended up with a 30 pip stop instead of a 12 pip stop. The stop would be at the same price no matter if I entered at the right place or not. That's kind of the point. But now, if gj moves 30 pips, assuming I'm using a 1% risk to the account, then I'm getting a 1% move/reward, but if I had used the same 1% risk to the account and went in at the right place I would be up 2.5% thanks to a 12 pip stop and more lots.
With the stop at the exact same place, where would you want to get in? Would you want to risk the same 1% and make 1% or 2.5% on every 30 pips the price moves in this trade? Also, if I had entered correctly, I would already have closed half the trade and have a free trade. Ugh!
in chart below i should have gone long when price was held by the moving average (the purple line) on the 1 hour chart and pushed up. Instead, I got in 20 pips late. And, it appears it was not only too late, but it may be where a short should have been taken instead; making this a painful trade to watch. yes, i forced the trade. The punishment? I need to close the trade at break even if given the chance or take a loss. However, I'm not going to take the entire 30 pip loss. That would just be foolish at this point.
Also note the yellow line in the sentiment indicator on the 1 hour chart. It's too low to allow a short. Price needs to basically go sideways in a range for a while for that yellow line to ease it's way up toward the 50 and allow for price to move down below it again for another short. This, along with the fed news in the afternoon, may be why gj is quiet during Asia today (or vice versa).
Thankful to get out with 1 or 2 pips each profit.
BUT NEVER GIVE UP, NEVER FEEL SORRY FOR YOURSELF...FIGURE OUT HOW TO FIX IT!
I bought more at the bottom!!! and am up 25 pips each on those with correctly placed trades and a 15 pip stop.
I was so excited that that trade worked out that I messed up immediately (probably should have taken care of my trading before posting on here) and forgot to close 2 or 3 of the 5 trades to cover my stop loss. thankfully, price never hit the stop, but it's pretty obvious I need to close, take the profit and stop trading for the day.
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