To Simon or forum Hi guys i shorted anglo with a ssf.my stop was set to trigger at 27500 and buy at 27550 to get out.anglo did not reach that price today.Why was i stopped out? Is nt the stop set on the underlying price (anglo shares)? instead of being in profit now im not in the market!thanx dummie
Stop losses are essential....however there are 2 different types. If you are trading SSF's you should have a fail safe trailing stop loss of 15 - 20% or 1 - 2 X ATR in the OST system. Your second stop loss is a trading stop loss which is a mental number which you act on if it is broken on close of day prices. Intra day break of the trading stop loss is irrelevant, only an intra day break of your fail safe stop can be acted on. Unless you are trading intra day, your trading stop should not be in the SB system, it is a number you watch and execute the following morning if it is broken on close. This will help you ignore the intra day noise while you wait for your analysis to prove you right and catch the price move you have identified.