Trade #1: Stopped Out

April 18, 2008 01:53 by Jon

GBP/USD came back and hit my stoploss, forcing me out of the trade for a loss of 177 pips on each of my three legs.  That may sound like quite a large loss, but I size my positions such that the total amount that I'm risking (for all three legs) is about 1.5% of my total equity.  One of these days, I'll post about my position sizing and money management.

In retrospect, I question whether I should have moved my stop to break-even after the first day closed near my first profit target.  They say "never let a winning trade turn into a loser," and I definitely think that that's a good rule to live by.  My practice has been to move my stoploss on all of my position to break-even as soon as the first profit target is hit.  In this particular case, it would have been beneficial to do so earlier.

 

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