werbl
New Contributor
I trade stocks, usually holding my positions one to five days. In my first few years of trading I was using a one-day, or a two-day trailing stop, and that seemed to be working quite well. However, over the past year or so, probably due to increased volatility, my stops have been getting needlessly hit way more often. For example, if I am long, a stock might have a larger one day drop, forcing me out of the position, then continue right on up and I miss out on all of the profit.
Taking these repeated small losses has been quite frustrating, so as a result I have loosened my stops quite a bit. Now I usually place them at levels of support and resistance, or along Bollinger bands. So far it's working out much better, and I haven't been burned yet.
My question for the other traders out there is, where do you place your stops? Why do you place them where you do, and do you change your strategy up based on overall market conditions or volatility? Thanks a lot!
Taking these repeated small losses has been quite frustrating, so as a result I have loosened my stops quite a bit. Now I usually place them at levels of support and resistance, or along Bollinger bands. So far it's working out much better, and I haven't been burned yet.
My question for the other traders out there is, where do you place your stops? Why do you place them where you do, and do you change your strategy up based on overall market conditions or volatility? Thanks a lot!
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