Gunning For Stops

How are you doing?

I now have three trades under my belt and I am £10 lighter in my pocket. Not the greatest of starts but I have to admit my day job has been eating up my evenings too recently so it's been difficult to find a decent trade.

However I am going to short Lloyds today if I can get my platform up. No rules just based on the news. I know this could be a crazy thing to do but I will keep my losses small. Just to get back in the trading game!

Anyway I digress. What I wanted to talk about today was stop gunning. Have you had a power play which your stop just got hit, only for the stock then to go the way you thought it was going to?

I have heard on authority that this is known as stock gunning. I mean how many people would be training the same way we did? So therefore how many people will be placing their stop losses in the same place?

If I were running a large firm that could make an impact on the markets, would I be telling all my brokers to move the market just enough to hit these stops and take out all of us?

Of course I would! So even though we have had the trainingm it is almost like we have to be a bit inventive of where we put our stops.

This could be behind a moving average, behind a big number or even behind the trend line.

Putting the stop 1 point outside the previous high or previous low may not be enough. Yes it may mean you don't take a trade due to the risk:reward ratio, but would you rather have more profit or more trades...