I find quite often in an effort to be disciplined and keeping losses small, I enter a trade in the same direction a few times and get stopped out. The entries are quite ofter at around the same levels or increasingly unfavorable levels. The result is that in an effort not to have a wide stop I loose more points in total than what I was trying to avoid in the first place. I find that in a contract like the FTSE, for example, I have lost 40 points in a range of 10-15. Has anyone experienced this problem and if so any suggestions for dealing with it. On idea I have is not to re-enter a trade unless you are entering at a more favourable price than where you were stopped out. Here you risk not getting in, in a runaway market.
Don't confuse discipline with small losses, they are not the same. It's often a fallacy to to use small losses as you often get stopped out on noise. You need to compare your stop to the volatility of the market. I'm guessing that your stop is alot smaller than the expected movement of your time frame? Need to give us a few more details: - Size of stops - Time frame - Risk/Reward - Risk/Volatility
In a contract like the FTSE I normally use a 10point stop. It is in the context of intraday trading that I posted the question
Ok, well the vol. on 5min a chart is about 5 points, so if your getting stopped out alot then that is just poor entry. However, on a 15min chart it's about 15 points so you could be just getting stopped out by noise.
I think what I am asking is this. Even with a good entry and stop you can get stopped out. Would you re-enter the trade in the same direction after you have been stopped out, at, say your original price, and risk the same amount of stop. My problem is that in a rangin market this can really do serious damage.
Well if you're constantly buying the top of a range and getting stopped out at the bottom of a range, and you do this 3 or 4 times in a row; then that is shit trading.
I think I agree with you that is why I put the post. Do you try once or twice and then wait to get out of the range? ie wait for a proper breakout and then buy even higher