Entries by Peter Brandt

Being Wrong or Getting Stopped out of a Trade is Fine

Getting stopped out of a trade only to have it work

I receive many inquiries from Factor Members on the subject of getting stopped out of a trade only to have it turn around immediately and work. This has happened to me hundreds of times over the years. Does it bother me?
NO!

It once did – but I matured as a trader. Getting Stopped out of a trade only to have it work is the price to pay for protecting trading capital. It comes with the territory. It is the cost of being a
good risk manager. I put getting stopped into the following perspective:

• The overwhelming proportion of my net profits as a career trader have come from trades that never experienced