DislikedHere's an example of how my week has gone.
PA just barely touched the SL and then the very next candle the PA fell 50 pips.
Ignored
I know setting SL has been a challenge for many traders and including me. It took me a longer time to see the benefits in having SL and doing position sizing.
The attached chart is what I made for my own journal. I use yesterday’ AU as an example to show trade management and setting SL for certain trade setups.
In your trade, your EP was 1.0592 and SL was set at 1.0530. This 1.0530 RN is just too pretty and obvious and I learned to avoid using RN and certain price ending ‘0’ and ‘5’.
I think your SL was hit by widen spread during the particular moment.
I use a combination of different methods for determining stops. I find that using volatility ATR is an effective method. It is also common hence many traders will place their stops using ATR factor. Most H1 trading I use the 2xH1 ATR(100) or 1xH4 ATR(100), from my experience this is quite effective. But we must also observe the PA where the recent swing highs/lows were and key S&R, RN and BRN.
The other thing is in trade management, particularly for short term swing trades, I also look at trade invalidation. If I enter a trade based on a defined setup, I will also exit when there is a setup in the opposite direction. I don’t move and increase my initial SL when market move against me. My initial SL is something I use to calculate my trade position size. And I cannot change that risk once I decided on taking a trade.
Just my 2 cents.
Regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett