Normal
Dont understand.When do you exit?If that was the case then you either take the loss from the stop ---whatever that is or your perminently in a trade which is trading above its stop?Do you mean Trailing stop?If so there is a danger in this.Its human nature to protect initial capital and open profit.The trailing stop and certainly the target price exit can be a two edged sword.While eliminating downside (Target) and minimising (Trailing stop) both can take you out of a trade like the one above. Leaving 100s of % without possibility of realisation.Its not possible to let profits run employing risk management to the up side.
Dont understand.
When do you exit?
If that was the case then you either take the loss from the stop ---whatever that is or your perminently in a trade which is trading above its stop?
Do you mean Trailing stop?
If so there is a danger in this.
Its human nature to protect initial capital and open profit.
The trailing stop and certainly the target price exit can be a two edged sword.While eliminating downside (Target) and minimising (Trailing stop) both can take you out of a trade like the one above. Leaving 100s of % without possibility of realisation.
Its not possible to let profits run employing risk management to the up side.
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