Tuesday, May 11, 2010

How To Avoid Stop Loss Hunting

Stop Loss Hunting is institutional evil trick to profit from Retail Stop Loss. They're deliberately moving the price so they can get the Trader's Losses realized and the price spiked to the trader's direction. Of Course without them on it.

So how to avoid these stop loss? No easy answer, but my opinion is: It's okay being stopped out. You may re-entry anytime you want. So it's very important to have a tight stop loss. It didn't do lot of harm. That's why the risk-reward ratio must be more than 2,3, even 10.

Unfortunately, you can't leave your open trade because we'll never knew when our Stops being washed out.

My blogs maybe full of article about losses, while everyone barking about how much profit they made. I still thinks that if we can manage our losses, then the profit will take care of themselves.

You don't have control from profit taking, but you do have control of Stop Losses. Mastered something you can control and leave the rest to do his own way, will make trading more simple.

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