George C 0 Posted July 19, 2018 So here's a trade I did on IBM on Jun 19. I saw the stock reversing so I went short at 149.68 and put my stop loss at the 9-EMA above it, which at the time was around 149.90, so my risk was 22c. My question is, would you say that is a good stop, or do you think it's too tight? Thanks in advance! Share this post Link to post Share on other sites
daniel lindegren 27 Posted July 19, 2018 A good stop loss is "if it goes against me this far, I may have been wrong about the direction". Personally, I would have put it higher. There could have easily been another pull back and stopped you out, before breaking down through VWAP. Share this post Link to post Share on other sites
George C 0 Posted July 19, 2018 I see your point. Would you have put it at the high of the previous red candle? Share this post Link to post Share on other sites
daniel lindegren 27 Posted July 20, 2018 Look at your 5 minute chart. If it would have made a new 5 minute high, it would be safe to say that it's probably not going to go in your direction. Therefore, I would have put it closer to the high of the previous 5 minute candlestick (around 150.30 area). However, having your stop loss that high may change your risk to reward. Share this post Link to post Share on other sites