The $ZEC stop from my sizing example got hit. Then price came right back.
- Entry near 1,218, stop at 1,110
- Yesterday's low was 1,075. The stop filled on the way down
- ZEC closed the day at 1,221 and trades near 1,231 now, above the entry
The loss was the planned 100. Not more.
This is the part of stop losses nobody likes. Sometimes you get stopped out right before the move you wanted.
It's still the right trade. You only learn after the fact whether a wick turns around. The stop makes sure the days it doesn't turn around cost the same 100.
The mistake now would be widening the next stop because of this one.
Have you been stopped out at the exact low before?
- Entry near 1,218, stop at 1,110
- Yesterday's low was 1,075. The stop filled on the way down
- ZEC closed the day at 1,221 and trades near 1,231 now, above the entry
The loss was the planned 100. Not more.
This is the part of stop losses nobody likes. Sometimes you get stopped out right before the move you wanted.
It's still the right trade. You only learn after the fact whether a wick turns around. The stop makes sure the days it doesn't turn around cost the same 100.
The mistake now would be widening the next stop because of this one.
Have you been stopped out at the exact low before?