If you are getting stopped out all the time then remove your stop and cover the swing.
What do I mean by cover the swing? Just what it implies. You should remove your stop and "ADD" to your position instead of stopping out. This is called building a position.
NO STOPS! Quit paying your broker and start paying yourself.
Just try it in a demo account for six months. You owe it to yourself. Before you give up completely you must try this.
My last warning about using stops...I have watched them ruin traders, make them cry and quit...and that is a fact. Hell, they just about made me cry several times back in the day.
Below is a screenshot of a 20 year Monthly chart of the USD/JPY. I am long 1,000 units or 1 micro lot. One micro lot = 1,000 units = $0.01 US dollar. This is in a LIVE ACCOUNT.
The red bubble represents my target and the green bubble represents my second entry long. Remember, this is a monthly chart. Let that sink in a bit then ask yourself one question from here. Which bubble does the market hit first? The red bubble sitting on top of price or the green bubble way down at the "5 YEAR LOW"?
If you guessed the red bubble you would be right about 96.7% of the time...cha ching!
Getting the message yet? Where is my stop?...let's go further.
The only place the market can go, if it does not go up and hit my target, is straight down to the green bubble...what do we do then?...panic and stop ourselves out?
That is one option that most traders seem to take but I say absolutely NOT...
Hmmm...what if...we try a "Different" approach?
Remove our stop and add to our position at each one of the grey squares (in the above chart).
Now we are covering the entire swing of a 20 year market low with only $1,000 plus margin which is10 lots x40 = $400 for a total of $1,400 to cover the entire swing and hold on to this baby until she turns back around and goes up.
Awesome...let's just see what happens.
I can't show you on this trade because I just entered it last week but if you go here you can see my Account Summary Report from Thinkorswim for 2017 and updated 2018.
I used the same trade model explained above to produce the gains you see in my portfolio.
I hope this helps or inspires some traders to think outside of the box a bit...especially if those pesky stops are killing your bottom line, or even worse your spirit.
Don't let those stops get in the way of your financial goals. I promise you you do not need them.
Fire up that demo account and get to work...I will see you at the end of the year...right here with my Annual Account Summary Report in hand. :)
Great Trading everyone,