Comment on Mr Consistent returning incredible returns
commented on
09 Jan 2014, 09:34 AM
assuming u r long at 6200 with stop at 6150(-50). now it rallies to 6300(+100) but the next minute itself comes down to 6150(-150 and the stop price) without creating a swing low. so basically, since there was no swing low, u could not trail ur stop and ur initial stop was still at 6150, which was hit. inspite of 100 points rally, u could not benefit out of it.
i am sure u would have heard or read the following words – never turn a winning trade into a losing one. in the above case, u were at a profit of 100 points, but still got stopped since there was no swing low to trail ur stop. in such a case, how will u NOT turn a winning trade into a losing one?
though i have fixed targets, for my trade management, even i use technical stops. but at times, a swing low is not formed and the price just comes down and hits my stop. how can still benefit from such a situation? thanks!