Mark's Price Action Course

[SimpleMeLike]

Why did you get stopped out? On a BO trade like your trade my SL has to be placed further away. Bigger risk and usually less reward but higher probability of at least a second leg up. However, it can be less risk ..higher prob ...and smaller reward if it goes in my direction right after my entry point. But since I don’t know that until it happens (thus initial risk scratched for actual risk) I have to place the initial risk in a logical place as in BO’s the market can have deep PB if heading into a range. If the logical initial risk is too big for my palate then I will skip the trade and wait for another.

The proper SL is one of the two red dots.

View attachment 199923

volpri,

Thanks for the response and I agree with you. My SL was the orange arrow below the breakout level, so that even if a PB occured, the chances are buyers will enter on the breakout support level. That did not happen and I was stopped out. For such a large uncommon BO bar like that one, placing a SL below that bar as you stated does make logical sense and appropriate risk, so i agree.

But I do see your point and like your statement regarding "If the logical initial risk is too big for my palate then I will skip the trade and wait for "

Using your SL locations, i would have have skipped the trade and wait for another opportunity. Good point and I appreciate it.

 

[padutrader]

padutrader,

Yes I agree with you, here is that example you mentioned above. I took this trade this morning, entered at the high of that big green bar expecting more buying upwards. It did not work this time and I take a loss. Am I upset, mad, or disappointed. Nope, I can't be mad when buying with the trend of the moment. Refocus and prepare for the next opportunity to make money.

View attachment 199922

a bo out of a range should not be traded....you could even look to fade it, if a good setup presents itself .

this what i mean: over concentration on stop placement when the reason for taking the trade is in it self flawed.

many traders think buying above a strong bear bar is a good strategy.....i used to think this
but i realised after a lot of heart burn that this is another example of a flawed thinking

 

[SimpleMeLike]

a bo out of a range should not be traded....you could even look to fade it, if a good setup presents itself .

this what i mean: over concentration on stop placement when the reason for taking the trade is in it self flawed.

many traders think buying above a strong bear bar is a good strategy.....i used to think this
but i realised after a lot of heart burn that this is another example of a flawed thinking

I think you mean buying above a strong bull bar, right?

The trade entry was good, stop loss wrong place, and too much risk.

 

[padutrader]

I think you mean buying above a strong bull bar, right?

The trade entry was good, stop loss wrong place, and too much risk.

no you could buy above a bear bar....in a strong up move, see yellow arrows in the chart
do not think the trade entry was good...
it was a BO from a big trading range that means the market spent a lot of time thinking about which direction to go....which is never good...if the market itself needs to think so long, if it self is not sure where to go,how can you be?
you need to understand and you need to read in between the chart...in between the lines

do not think: ok i am not sure but the stop will save me.. the stop is overheads and too much over heads is bad for business

 

[padutrader]

The proper SL is one of the two red dots.

do you have what happened later?
i am almost certain that both the red dots would have been broken:the market would go below them and then, reverse probably take out the high

 

[SimpleMeLike]

do you have what happened later?
i am almost certain that both the red dots would have been broken:the market would go below them and then, reverse probably take out the high

padutrader,

Good question.

This is what happen later. Volpri recommended stop loss locations was not touched. Placing the stop loss below the big breakout bar was an optimum location for this trade.

 

[padutrader]

padutrader,

Good question.

This is what happen later. Volpri recommended stop loss locations was not touched. Placing the stop loss below the big breakout bar was an optimum location for this trade.

View attachment 199968

thanks

 

[SimpleMeLike]

thanks

You're welcome sir

 

[padutrader]

no course can teach you how to trade....anymore than a road map will get you to the destination....
trading is just a....wonderland
you wander through it and enjoy it

 

[SimpleMeLike]

Why did you get stopped out? On a BO trade like your trade my SL has to be placed further away. Bigger risk and usually less reward but higher probability of at least a second leg up. However, it can be less risk ..higher prob ...and smaller reward if it goes in my direction right after my entry point. But since I don’t know that until it happens (thus initial risk scratched for actual risk) I have to place the initial risk in a logical place as in BO’s the market can have deep PB if heading into a range. If the logical initial risk is too big for my palate then I will skip the trade and wait for another.

The proper SL is one of the two red dots.

View attachment 199923

volpri,

Question for you. Do you consider risk vs reward on every trade? For example, there are times where I observe my risk is 25 ticks but my potential profit target is 8 ticks. My risk and reward varies day to day.