What does it mean to "move stop to break even"

Discussion in 'Risk Management' started by gravel lick, Jun 29, 2013.

  1. Daring

    Daring

    Correct, at least in my book/world.
     
    #11     Jun 29, 2013
  2. s0mmi

    s0mmi

    > Good technique in trading that I found is to constantly toggle your bids/offers as you get more right/wrong.

    This is the dynamic nature of trading that makes it really difficult. But also its what the best traders are doing because they are not simply leaving a STOP-MARKET order in the book and getting out in the random noise part.

    * For example if you entered short at Price-10 and left your bid at Price-5, you would probably leave your bid at Price-10 if the price went against you up to Price-15 (because now you're wrong).

    * Alternatively, if it doesn't come back all the way, you may want to get half out at Price-12 and leave the other half to get out at Price-8 (because if you're right and it comes back there's a high chance it will trade through you).

    Its little tricks like these that save you over the long run. You realize that if you are a Binary trader (in versus out only) then you will have a very hard time because of how efficient markets are these days, with price action seemingly gone now, therefore you will need to be more sophisticated in terms of time-spent-at-prices and how aggressive bids/offers get wiped.
     
    #12     Jul 9, 2013