Hi,
P2 trade bounced 50c off my TP a couple times, then promptly reversed to my SL. I considered adjusting TP to get out then and there, but left it alone as there was decent volume heading into it, and besides, what’s 50 cents? Apparently more than I realize.
How could I have prevented this? $95 was the TP, is this some sort of barrier?
2014-05-07_1310 - Doppelrock’s library
Thanks,
Rob
So you waited to try and get another .50? That close to your TP I would have got out of the trade manually. I know as traders sometimes we get a little greedy and let our trades run longer than we should to try and get just a little more profit but that close you shouldn’t have taken the chance of it reversing and got out of the trade. Unfortunately it went against you and what was a profitable trade turned into a loser.
The experience of wins and losses is part of trading and you have to go through those moments to learn and get better from. I’ve had a ton of those moments and I guarantee you take profit the next time. 
Thanks for the feedback binsking. You know, I set that TP for $20 profit on the binary, and the frame of mind at the time was not greed but more or less rules based. I had considered adjusting my TP, but why would I think that it wouldn’t? That is what the trigger is for, to set a TP and let it do it’s thing.The thinking was rather basic in going for a pre-determined profit target amount.
Thanks,
Rob
I would say this is definitely a judgment call. The question I have is where do you draw the line between sticking to the rules and making an exit with a profit like in your situation. I know it emotionally ****s to miss a profitable trade this close, but that is why the rules are an advantage. The more you can trade like a robot and remove the emotion the better off you will be in the long run. I personally just like to execute the rules every time, regardless and let go of the “could have been’s” and move on to the next trade.
[quote=doppelrock]Thanks for the feedback binsking. You know, I set that TP for $20 profit on the binary, and the frame of mind at the time was not greed but more or less rules based. I had considered adjusting my TP, but why would I think that it wouldn’t? That is what the trigger is for, to set a TP and let it do it’s thing.The thinking was rather basic in going for a pre-determined profit target amount.
Got an idea for a gauge of sorts to have a visual of where price changes in a binary, making a new thread for it.
Thanks,
Rob[/quote]
Yeah I definitely get what you are saying about setting your TP and letting it sit. Now from your post it seems like you were watching the charts as your trade was developing, so in that case if the current price was only .50 away from my take profit I would have pulled the trigger. Now if you were away from the charts that’s a different story. Getting a profit of $19.50 is close enough for me if my TP is $20.
The best thing to do is 1st to look at the actual binary price ladder and see where the prices are - ie f your going for 95 but you see when you get in that prices are at 94 or maybe 97 and 92 is the (what i call 2nd best/worst price) then that would be a better target.
Also using the simulator will help you up front in determining exit price but the best thing is just looking at the price ladder.
The next thing is no don’t be a robot - if the thing is pouncing against your order for .50 or 1.00 just get out of the trade and move on we are not talking missing out on a potential profit run here. we are talking about risking $40 because we want to be disciplined and make .50 more cents. If your that close either A close it immediately if its sitting on it or be have a market order ready to exit if it goes back. Personally if its right at my take profit and wont filll i’m done out thank you for the money next trade.