Friday, June 11, 2010

STOP LOSE: TIGHT VS LOOSE

I am a tight SL follower. In many cases Tight SL may lose to Loose SL. Like today's result I waste $150 because of my tight SL policy ( exact 1 tick being stopped out )
But I prefer a tight SL policy with many reasons:
1. Protect me from uncomfortable feeling. If I had a big losses in 1 trade, I may tilted and stunned. Cannot concentrate. Sometimes moment later the price moved toward without me, which is make me even more frustrated.
2. Double backup. What happened if your SL slipped witihin let's say 10 ticks from yours? Adding more frustration and ruined the plan. If I had a Tight SL I may get out with a worse price but not very scary.

Quit my day. I forgot to checked the news schedule and I paid for it

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