Monday, March 24, 2014

Stop Limits

Stop limits always seem like a good idea. So often I've seen a quick blip lower followed by a recovery then some additional time spent solidifying the price before moving higher. But, that doesn't always happen. A second stop ought to be placed as an OCO that will clear out the position if it's more than a blip. I've successfully exited a position after a blip that hit my stop only to have the price continue higher. My stop was not low enough. Seen it work/not work both ways.

And then there's my relentless desire to catch the bottom. Newbie mistake but my tolerance won't stand for only a few cents of risk. So I keep looking for the next pivot. Each day's trade adds to my experience and I'm hoping that seeing the patterns unfold over and over will work be toward a consistent style.

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