Intraday Market Thoughts

Bad Stop Placement

by Ashraf Laidi
Aug 20, 2021 18:28

Here is an example of poor stop placement in our Premium trade of EURCAD longs. The market fell below the 1.4700 stop, bottoming out at 1.4660s before surging 400 pips. Luckily we told our WhatsApp Broadcast Group members we were staying in the trade and adjust the stop if they had to. Regardless of whether you go for a 3-1 or 2-1 reward/risk ratio, price entry is important, but heeding the technical importance of your stop is more crucial. 

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Bad Stop Placement - Eurcad Post Trade Aug 20 2021 (Chart 1)

 
 

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