Mira wrote:Merry Xmas to everybody!
Stocks earnings can gap price very far but the risk is to "lose 20 pips every 5".. do you ever thought about it?
I do not trade stocks, but Alias might comment on that.
So the question is whether or not I worry about price gapping past my stop loss?
I think that a previous post has confused you...
...your risk, "your money", is going to be around -1% if/when price reaches your stop loss.
the total amount that you are going to lose per line as price crosses your stop is based on
your position size:
How scary this is depends on how fast you are adding size and what that total size is...:
3/9: -2/3 space, stop moves up to the 33% ret, .9% per line.
3/6: -1/2 space, stop moves up to the 50% ret, .6% per line.
3/4: -1/4 space, stop moves up to the 75% ret, .4% per line.
3/3: same space, stop stays at the 100% ret, .3% per line.
...It also depends on whether you sold a pattern or a breakout & whether or not you are
trading a large period or a small one:
if we are talking M5-H1 lines then each line is about 4 pips & price gapping 60 pips past your stop will result in
a loss of 15 lines.
H4: -7.5 lines
If you are really worried then you should either withdraw profits or trade based on a fixed amount.