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Focus on Stop Loss

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Focus on Stop Loss

This is just an idea that has been working for me and may be helpful to someone else:

Focus on where you should place your stop loss (SL) as your starting point to help you determine where you should place your entry. If you consider how many times you've probably been stopped out only to see the price action continue in the direction you initally determined; it would be feasible that the placement of your SL is the issue and not your entry.

For me, I use the ATR to determine my SL. So, if my calculated SL is 6 pips and I've determined where to place my stop, I calculate 6 pips up or down to determine where my entry should be. One of the things I try to determine is where the majority of traders might be placing their SLs based on the the chart timeframe I'm trading and place my SL above or below that area. Keeping in mind that many traders use the ATR to calculate their SL as well.

Focusing on the placement of my stop loss first has helped me in my trading so hopefully a change in perspective willl someone else in the Hive.

Good luck! 

Thu, 08/16/2018 - 8:01pm