A Trade Supporting My Stop Strategy

April 11th, 2007

After analyzing my trades in January I’ve been trying to add a dose of patience to my stop strategy. I try to not move my stop to breakeven until at least an hour after I enter a trade. It’s difficult – but my trading journal tells me it’s the right thing to do. The other day I took a boredom trade that cost me 2R.

Today I traded WNR and, of course, my strategy was tested. This time it worked out for 4.25R. For “January Dave”, this would have been a 0.5R loss.

Short WNR, 2007-04-11

I opened up April with a terrible day where I overtraded and mishandled just about everything. That left me with a hole to dig myself out of.

3 Comments

  1. Dave Said,

    April 12, 2007 @ 5:13 am

    @Prospectus: Thanks! Yeah, it’s really difficult at times to be patient – but time and time again my journal tells me it pays off.

    Thanks for the link to the Livermore quotes – there’s quite a few in there on “sitting tight.”

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