My first big lesson on moving stops in CFDs
I had a decent position on $EURUSD short a few months back, and it was moving in my favor nicely. Got a bit greedy when it hit my initial target, thinking it had more to go, so I trailed my stop tighter than I should have, then moved it again to capture more, only for a sudden spike to take me out for a much smaller profit than I'd originally locked in. Ended up watching it continue the original move, but without me. Definitely learned the hard way about sticking to my original plan or at least giving moves enough room to breathe.
Yeah, that's a tough lesson many of us learn the hard way. It's so tempting to try and squeeze every last pip out, but sometimes that just leads to giving back a good chunk of unrealized profit. What's your strategy now for trailing stops after that experience?