This is my real post but I really need some help after having loss so much in the past 2 weeks from this highly volatile market. I only just started trading CFDs and have a system which I've backtested nmpteen times with confidence but ever since starting my trading adventure on the 9th of last month I've made around 30 odd trades and have made losses of over $6000 in the past 3 weeks. As you can imagine I am absolutely gutted and disgusted. And the thing that hurts most of all is I followed the rules of the system cutting all my losses as soon as my maximum loss level was reached but as soon as I close the position reverses and goes in my way. As a result what I want to ask is this : If your in a position and it makes a large downwards move tomorrow whether it is straight gap down from the open or over the course of the day then this will stop you out. But if you did all your analysis right and the stock is from a good entry(eg in uptrend on pullback volume etc etc) AND there is NO negative news on the company then I believe you should stick with the trade and NOT CLOSE it rather wait it out next day or two to see if you can atleast get a better price to exit from or even have the trade turn positive. Because if the large downday spike is unusual for the recent price history then treat as such - a market overreaction or correction whatever you may call it. Hence it does not mean you should immediately sell at your stops because that should only be the case when the price "GRADUALLY" drops over a few days not one large massive drop from a panic selling day. What I mean by gradually is its falling within the normal price range (ATR if you will) for the stock. If the large spike down was because of some bad news around the company then for sure get the hell out sooner as it will get worse but if nothing fundamentally has changed with the company then dont let the fear of turning a loss turn into a bigger loss grip you because stastically it favours a turnaround and what your experiencing right now is really just a correction which will eventually come back to its original levels. I know one of the cardinal sins of trading if not the biggest is to let your losses grow by not cutting your losses short. Well I'm at the point where I'd say stuff that as its only a subjective rule you should follow based on the stock and market conditions because if you follow that blindly then you'll experience what I've been through ..absolute massacre from the markets as its see- sawed its way to squeeze my shorts one day to turn around and dead cat bounce my longs then turn around again to squeeze my shorts before going back the other way after I'm out at my stop loss. I do strongly believe you should cut your losses but I dont think you should follow it rigidly because if the stock behaves uncharacteristically by dropping so much and nothing is wrong with the setup and company is still good then its wrong to sell as the move was overreaction and should just let it pass as its bound to go back higher. Tell me if anyone has felt like wanting to break the rules for this because had I held onto my positions for atleast another day risking a loss from $250 to $1000 I would have seen a dramatically reversal to be in a profitable position. Thanks and feedback appreciated.