tight stop really work?
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"Positions established must be reduced and removed until or unless the market proves the position correct" - Phantom of the Pits.
If you are struggling with stop placement this is a rule to live by. Don't wait for the market to prove your position wrong! If the position isn't correct get out with a small loss or small gain.
It doesn't matter whether you are day trading, swing trading or position trading this rule will help you keep your loses minimal. I always have a hard stop in as a backup (more of an emergency stop) and would only not constitute a significant loss if the market runs against me.
If you are struggling with stop placement this is a rule to live by. Don't wait for the market to prove your position wrong! If the position isn't correct get out with a small loss or small gain.
It doesn't matter whether you are day trading, swing trading or position trading this rule will help you keep your loses minimal. I always have a hard stop in as a backup (more of an emergency stop) and would only not constitute a significant loss if the market runs against me.
noise is a good thing, forex has less noise and trends well, but that means when you're on the wrong side of the trend and large stop you lose out. In example S&P futures trends less, so when you're on the wrong side it's easy to correct your losses
"Noise" is subjective. Some pairs have 50-100 pips as "noise".
What's your comfort level?
What's your comfort level?
It's "noise" if price doesn't hit your stop, and you profit.
It's a "spike" if your stop is taken out, you blame the broker and lose a couple $.
It's a "spike" if your stop is taken out, you blame the broker and lose a couple $.