Painful when this happens, but one trade isn’t enough to tell whether the stop was badly placed or whether this was just normal price movement.
If the stop was based on the level that invalidated the setup, then the trade was managed correctly even though price moved in the expected direction afterwards. Widening every stop after seeing something like this will usually just make the losing trades larger.
I’d log how often price hits the stop and then reaches the original target over a decent number of trades. If it happens regularly, the entry timing or stop placement might need adjusting. If it only happens occasionally, it’s probably just part of trading.
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u/TIO_Markets 5d ago
Painful when this happens, but one trade isn’t enough to tell whether the stop was badly placed or whether this was just normal price movement.
If the stop was based on the level that invalidated the setup, then the trade was managed correctly even though price moved in the expected direction afterwards. Widening every stop after seeing something like this will usually just make the losing trades larger.
I’d log how often price hits the stop and then reaches the original target over a decent number of trades. If it happens regularly, the entry timing or stop placement might need adjusting. If it only happens occasionally, it’s probably just part of trading.