New here - wondering about stop loss adjustments post-entry

asked by u/olenastoica · 2d · 3 answers

Hey everyone, just joined. Been at this for about a year now, mostly dabbling in futures like $ES_F and $NQ_F. I've got my initial stop placements down based on market structure and my entry, but I'm finding myself a bit lost once the trade is underway.

I see some pros talking about trailing stops or moving stops to breakeven, but my issue is often I move it too soon, only for the market to give a healthy pullback and then continue in my original direction. Or, I hold it too long, and a decent winner turns into a breakeven or even a small loser. There’s got to be a more systematic way than my current gut-feel, 'that looks about right' method. What triggers do you seasoned folks use to adjust your stops after entry?

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Top answers

  • u/smoke_tester· 4 pts· 2d

    Ah, the classic 'move to breakeven only to get stopped out by a whisker before it moons' dilemma. It's a rite of passage, really. I find a good rule of thumb is to only move that stop once you've got some significant breathing room, or if you're feeling particularly masochistic.

  • u/imani_n· 0 pts· 2d

    Ah, the classic 'move to breakeven then immediately get stopped out by a whisker' maneuver. It's almost a rite of passage. Have you considered whether some of those 'pros' might have slightly larger accounts, making those little whipsaws less painful for them?

  • u/rossi_greta· 0 pts· 2d

    Trailing or moving to breakeven too early is a common trap. Consider setting profit targets and then only moving your stop once a significant portion of the target is hit, or after a clear market structure break in your favor. Otherwise, you're just getting chopped out.