Hi,
I realise this is an old thread, but the points raised are similar to a trading strategy I have been trying and incidentally failing with
Incidentally I have been using many of the stocks listed here including AAL, RIO, and XTA. The problem I am having is that I am setting up stops a few point above/below previous resistance and support levels. In terms of profit of course as soon as the level is hit then that is the profit I am given. However, during times when the price has broken through previous S/R levels I am sometimes not getting closed out by IG index until several points beyond my stop (30 pts in one case) meaning it is near impossible to work out a risk reward ratio in advance, and subsequently meaning losses when they occur have exceeded gains.
In addition, does your method (inc. risk/reward calculation) account for the spread? For example these stocks have a spread of 9 pts.
Any help greatly appreciated from an increasingly despondant trader!
Karl
I realise this is an old thread, but the points raised are similar to a trading strategy I have been trying and incidentally failing with
Incidentally I have been using many of the stocks listed here including AAL, RIO, and XTA. The problem I am having is that I am setting up stops a few point above/below previous resistance and support levels. In terms of profit of course as soon as the level is hit then that is the profit I am given. However, during times when the price has broken through previous S/R levels I am sometimes not getting closed out by IG index until several points beyond my stop (30 pts in one case) meaning it is near impossible to work out a risk reward ratio in advance, and subsequently meaning losses when they occur have exceeded gains. In addition, does your method (inc. risk/reward calculation) account for the spread? For example these stocks have a spread of 9 pts.
Any help greatly appreciated from an increasingly despondant trader!
Karl
