Just curious, if on most of your stop outs, you get right back in on the same side, what is the point of having the stop? Just to avoid a potential deep dive intraday? Seems like a commission churner and just adds to slippage and transaction costs.
ES Journal - 2015
- Thread starter Buy1Sell2
- Start date
Just curious, if on most of your stop outs, you get right back in on the same side, what is the point of having the stop? Just to avoid a potential deep dive intraday? Seems like a commission churner and just adds to slippage and transaction costs.
That is the area near the low from July which was a somewhat panicky bottom and also lots of other traders looking at 2040 as resistance. I don't view it as a long term area of resistance, like I do 2060, which is the end of 2014 level, a huge psych resistance level. 2040 should be no problem to get through, 2060 will be much tougher but doable considering how underinvested hedge funds are.
It is to avoid a deep dive as you say but also a regrouping so I don't sit and hope a trade will work. A lot of my best day trades over the years have come when I get stopped and then get back in.