Originally posted by Cooder
Thanks Dave, I was just worried about volatility. I watched the Brexit vote and every booth moved the market.
Now I'm not saying mid-terms will be like Brexit, it could be a non event. I just think it is too risky a trade.
Now what I am saying is stops were hit, orders were filled in the opposite direction. and their stops were
hit. So anyone trading was being hit both ways trying to cover.
So I guess that would equate to the same trading any News event. now just say with your trade.
If, as each state is being counted, it spikes one way, hits your stop, enters short, spikes back up,
hits your new stop, you are out of both trades at a fair size loss..
I guess your system is not as simple as that example. For me, just too risky to trade today.
I see what you're saying but I have my stops quite loose. I've never used tight stops in my trading.
I still stand my comment that I don't think we'll see the reaction that everyone is fearing. But if I'm wrong (and I can be), and I get stopped out, then so be it. There will be other trades.
I've learnt over the years to trust my system. There's been a few times I've not taken trades because of another catalyst like the news / what people are saying etc only to watch it play out to what would've been a profitable trade.
Currently, this trade is only risking 1.13% of my account, so if I get taken out it's no big deal as I'll (hopefully) make it back with profitable trades later this week/month.
