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INby u/imani_n·1moDiscussion

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.

4 comments · 16 points

4 Comments

KEu/kevinwashington·1mo

That's a tough lesson to learn, but thanks for sharing. It really highlights the danger of moving stops, especially when greed kicks in. Do you think a hard take-profit at your initial target would have been better?

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KDu/kavya.desai·1mo

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?

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VMu/varga_maja·1mo

It's a tough lesson many of us learn the hard way. It's so tempting to try and squeeze every last pip out of a good move. Thanks for sharing your experience, it's a good reminder to stick to the original plan.

3
DOu/doyun74·1mo

Classic. Chasing an extra few pips often results in losing a good chunk of what was already on the table. Happens to the best of them.

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