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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 · -4 points
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.