Discussion in 'Trading' started by crgarcia, Dec 17, 2007.
I.e.: If you are long, and the market goes down, you sell to close; and immediately sell short?
I think Marty Schwartz commented on this...
"Before you know it, they'll take your house away."
Shift to neutral and clear your head first.
lets say stock is at 100 and you go long.
You put a stop at 48 because it has not fallen below 50 for well over 3 months and there is lots of support.
Because of the significance of where you put your stop loss, this is why you may choose to reverse for a breakout in the other direction.
Just because you get stopped out does not mean reverse. Like the other guy said... it's all in the plan.
i find revenge trading works rather poorly so only if i keystroke will i flip right away haha
I agree with the above. Also depending on what type of trader you are just because you got stopped does not mean that its a good short when considering risk reward.
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