Taken the loss but getting the minimum loss!

[Frankel]

Hey Guys

New here from another forum.

Maybe this might get a bit of conversation moving.

Been trading 3/4 months and I feel I am doing well but I need a little advice.

Every time I open a position I choose where I will cut out my loss before I open my position.

There is one thing I cant get my head around!

For example, when a trade breaks a resistance point I know exactly where my stop loss is just on the other side of the resistance.

But this is where I am getting stuck...

When a trade is in a directional swing... so its... lets say steaming in. Now its wrong to just assume its going to keep steaming in, but all the tell tell signs are there, it isnt stopping and I want to jump on. No waiting for a retrieval its giving all the vibes of a strong continuation. So i jump on!

I can never work out my stop loss on this type of trade. this type of trade is stopping me breaking a daily 80% strike rate. Because the resistance or support line is so far up the trading range, I will have massive red there if i make that the stop loss and when they reverse there so quick that i cant rely onick other market signals quick enough to get a much smaller loss.


I look forward to anyways input.

Thanks

[rphi6876]

Simple solution seems to just sit on the sideline for these trades. You have identified that these are problematic for you, if you consistently lose money on them pretty easy solution is just dont make them. If you do make money on them in the long run then just keep taking them (your trading for a long run P&L dont worry about race to race profits). The above is assuming you have a risk neutral utility function, if your risk averse and you find the risk of these trades too much for you then once again simple solution is just dont take them.