Hi , my lack of success is well documented on here but i`m hoping someone can help with this query !
The "noise" in the market where the price moves can be up/down 3 or 4 ticks cause me to red out more often than not , just before the price goes exactly the way i thought it would but instead of profit i am forced into a loss.
The problem is that if you place the stop too far away ( many on the forum recommend a wide stop loss ) and the price moves completely against you with no rebound you`ve lost even more. This is particularly common in and around the 3.00 to 6.00 price points where you might lay at say 4.00 , stop loss at 3.85 ( 3 ticks ) , if you drop it further , you`ve got to assume the next price is heading to 3.75 so you lose even more.
This MUST happen to the big players as well as us £10 traders as there are £1ks going through the market and you can`t get it right every time , so how do you deal with this situation ?
Is it better to just put your trade in and if it does not go your way IMMEDIATELY , get out and try again ?
I`m not talking scalping as i try and hang in for the swings to varying degrees.
Thanks
It`s too noisy in here !
If your a swing trader then i would say a 3 tick stop loss is way to short, you will go bankrupt like that imo.
especially if you use an automatic stop loss it's a quick way to the poor house with all the false trigger you will get from the market jumping about,
i never use them.
it far better imo to employ a manual stop loss and use your judgement as to when you feel the market has gone against you.
especially if you use an automatic stop loss it's a quick way to the poor house with all the false trigger you will get from the market jumping about,
i never use them.
it far better imo to employ a manual stop loss and use your judgement as to when you feel the market has gone against you.