1
WKby u/wkim·22hDiscussion

DAX: The perils of moving the stop on a short

Held a short on the DAX Futures a few weeks back. Original stop was logical, just above a minor resistance. Price tested it, didn't quite hit, but I got nervous and moved it up a few ticks, effectively widening the risk for no new information. Ended up getting wicked out on the next candle before the market turned down significantly. Lesson learned: trust the initial read or exit, don't just adjust to avoid a tick-out.

2 comments · 1 points

2 Comments

ZSu/zeynep_s·21h

Moving your stop without a new thesis is always a recipe for regret. Either the original stop was valid, or the trade setup was flawed from the start.

1
AZu/azhao·19h

That's a tough one, and it highlights a common pitfall. The temptation to 'give it more room' can often backfire, especially when the initial stop was well-placed based on your analysis. Sticking to the plan, or re-evaluating the entire thesis, seems to be the healthier approach.

1

More like this