another viscious whip saw
- Thread starter NY_HOOD
- Start date
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The past few days have been phenomenal for my PnL. Caught a few nice intraday swings today also. The trend was beautiful, smooth down.
If you noticed the PnL thread, the profits of the traders who post there literally exploded. Traders I personally know also doing well.
Maybe try reducing size .
Whipsaw???? Where? Today was a perfect stairstep down right to the 13200 Dow support line.
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NY Hood, it sounds to me that you are not trading with wide enough stops. On volatile days you have to give it a lot of room and when you are wrong it definitely will cost you, but if you can read price you know in the end you will come out fine. Trade fewer contracts and widen those stops.
bfft another crappy day
thankfully I dont plan on selling soon
thankfully I dont plan on selling soon
Hmmm, not sure I agree. I believe stops should always be within rule based risk parameters related to account size. If stop needs to be widened outside of this range to remain out of the noise, do not take the trade.
For example, my first ES sell signal was at 10:11 @ 1494.00. Stop was set above the previous swing high at 1496. Stop was lowered throughout the day at 1492, 1486.50, 1480, 1469, and position was covered at 1459. No stress trading with stops outside of the swing points and yet good risk/reward. If a trader is consistently getting stopped out, their entries in regard to stop placement is the issue. Widening stops increases risk, not lessens it. That's never a good thing.
One of the mistakes I see traders do is moving their stop to breakeven too soon, which then gets hit, and the market then goes in their direction. The death of a thousand cuts, so to speak.
Preservation of capital is paramount to maximizing profits. Widening stops due to poor entries goes against this fundamental hard rule.
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