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Thoughts on cutting losers when they just graze your stop?
Hey everyone, still relatively new to this and trying to get my head around risk management in practice. I've been setting my stops pretty tight lately, trying to keep my loss per trade small, but I'm finding myself getting stopped out by just a few cents or a tick, only for the stock to then turn around and go in my original direction. It's frustrating to watch. Is this just the cost of tight stops, or am I doing something wrong with my placement? Do you guys typically widen your stops a bit after a few instances like this, or stick to your plan?
1 comments · 1 points
That's a common dilemma, and it often comes down to finding the right balance for your strategy and the volatility of the instruments you're trading. Have you considered using wider stops but reducing your position size to maintain the same risk per trade?