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#1 Jan. 5, 2012 08:29:00

monacare
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stop loss placement

there are times the market noise do not allow you to make stop loss placement based on risk reward ratio considerations. sometime i contemplate discarding this risk reward "thing" and just move that stop loss considerably out of the way when i am somewhat confident to collect those 50-100 pips.

see below how the EUR/USD took aim at my SL before doing a 180 turn to generate 140 pips.
[IMG]https://docs.google.com/leaf?id=0B0jnHZ0mIQOZZDVhMzUyN2QtODA0Yi00OTAwLWE4ZTMtODE1YzM1NGY2YjA1&hl=en_US[IMG]


moments in time ... that's all we have.

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#2 Jan. 7, 2012 00:09:00

monacare
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stop loss placement

trying to post a oanda chart but ... can some one explain how to post an image saved on my computer?

[ January 07, 2012, 12:18 AM: Message edited by: zeekslad ]


moments in time ... that's all we have.

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#3 Jan. 7, 2012 10:27:00

guw
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stop loss placement

quote:
Originally posted by zeekslad:
trying to post a oanda chart but ... can some one explain how to post an image saved on my computer?

You can't.

You have to post the image on a hosting site like www.imageshack.us and then link to it in your post.


It all depends on your strategy.

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#4 Jan. 7, 2012 14:15:00

Astone999
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stop loss placement

In more detail here is what I do:

>Copy Oanda chart by pressing Alt and Print Screen at same time.
>Open M/S Paint and paste. Save image to desktop.
>Go to imageshack.us and upload image (use 640x480 message board size).
>After upload copy Forum code and then paste this into Oanda Forum Quick Reply message window.


"It never was my thinking that made the big money for me. It always was my sitting". Jesse Livermore

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#5 Jan. 7, 2012 20:01:00

monacare
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stop loss placement

thnx for info ..


 -

Uploaded with ImageShack.us

[ January 07, 2012, 08:12 PM: Message edited by: zeekslad ]


moments in time ... that's all we have.

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#6 Jan. 7, 2012 20:32:00

Astone999
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stop loss placement

Do you use support and resistance levels to help in placing stops? If not, something to look into as well as levels to take profit.


"It never was my thinking that made the big money for me. It always was my sitting". Jesse Livermore

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#7 Jan. 8, 2012 13:02:00

aurther11
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stop loss placement

Stop Loss Placement

1.Four key components of the stop placement decision.
2.What to do if the optimum stop is too far away.
3.Time stops, how to save a lot of money!
4.Using stops to capture a profit.
5.Advanced techniques using Fibonacci and indicators to determine optimum stop placement.
6.Identify when a close stop is risky, or advisable.
7.When to use a closer stop.
8.How timing can effect your stop placement.
9.How to improve your odds by combining different techniques.
10.Allow enough room for the trade to develop, but take excessive risk.

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#8 Jan. 8, 2012 13:16:00

Lonestar
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stop loss placement

It didn't "take aim" at your stop loss. It took aim at a major resistance level which acts as a magnet and happened to be where you choose (poorly) to place your stop. You put your stop basically dead on where price broke down on the 28th. And that's not market noise taking you out that's bad stop placement. Plain and simple.


Just because you've made up your mind about something doesn't mean you should stop listening.

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#9 Jan. 8, 2012 15:01:00

Jamespond
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stop loss placement

Hi Zeekslad,

Can you give us any more info on why you entered there or what your entry signal was ? Just asking because I think it's important to give any possible advice on SL settings.

Nobody has an entry signal that works 100% of the time. So it's important you know your entry signal inside out and even more important to recognize when it's failing.

The best advice I can give you at this time is to go back to the drawing table and recheck your entry signal or pattern or whatever got you into this trade. Try to define the price or moment in time when it is clearly failing. When you have worked that out, that is were your SL should be. Not "somewhere out there" because you're so confident to collect this time. You hope for good odds when entering a trade, but the fact is that you never know upfront if there will be anything to "collect" at all. That's one of the main reasons to have a stop in the first place - always.

This specific situation is mentally probably painful because you got stopped out and price reversed after that. But trust me, nobody went looking to stop out your specific trade.
Look at it from the brigth side - it's from those things we learn [Wink]

JP

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#10 Jan. 8, 2012 16:23:00

monacare
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stop loss placement

good question as to why i entered. actually for this one i broke my rule a bit (still have to work on the discipline of not breaking rules). i use candle stick patterns and RSI indicator exclusively. the signal was there on the daily chart but i should have waited for the reversal candle on the 1hr chart before entry, which really was where the darn thing turn around (18 hrs later). so looking back my entry was way too early.


moments in time ... that's all we have.

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