Keeping stops tight

Keeping stops tight means very well considered entry positions if we are to have a chance at profitability.

09:00 My watchfulness of the market has, I think, increased. I take very early exits as required. Here’s the trade from this morning. I entered on bar 1, a type of pattern break pullback (pbp); seemed reasonable at the time. My concern was the significant number above the entry position. However, if bar 1 had closed even slightly above the close of the previous bar, I would have exited. If bar 1 had pushed up – before closing to one pip above the high of the last two bars – I would have exited. When bar 2 closed, as a combi long, I exited which coincidently was breakeven.

When the reason for entry changes, I get out.

An odd-looking entry. My reason was in the price action of the three bars before entry. Also, I’m looking for opportunities where the stop (and therefore the risk) is small. Not a perfect ‘Bob’ entry, but this time it worked.

Of interest, I moved the stop to its position at two pips above entry only after the bar below the 7,160 level closed. I took the scalp due to the ranginess of the day which was also the turning point and the ceiling test of the bar to the left at 08:20.

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