How do you guys handle re-entry after getting stopped out early on a good setup?
Been looking at the $DAX and $EUSTX50 lately, and I've had a few situations where I identify a solid setup, get in, only to get wicked out by what feels like noise, and then the move I anticipated happens anyway. It's frustrating because the analysis was right, but the entry or initial stop placement was maybe a touch too tight. My question is, do you usually wait for another clean setup, or if the original thesis still holds strongly, do you try to re-enter, perhaps with a wider stop or different size? I'm trying to refine my risk management without being stubborn.
If your analysis was right but you got stopped out by noise, your stop placement wasn't right for that setup. You either re-evaluate your entry/stop logic, or you accept the missed move. Chasing it after being stopped out is just revenge trading.