The real test Mac of whether your stops are too tight or not is what happens AFTER you get stopped out. How far does the market have to go before it would resume the direction of your trade and begin making you money? In almost all cases you will find that you save more money by taking an early exit than if you allowed the market to move against you more...only to have the same end result, a loss, but a bigger one!

Now that Jeff has been stopped out of his long trade it will be interesting to see if we get a reversal that sends prices higher again. We might, as there is plenty of support here, but if prices continue lower tomorrow, then Jeff was better off taking his licks where he did. If not, and we get a reversal, then Jeff might consider adjusting his stop a bit for the next time.

I recently had Live Cattle stop me for a trade that was a nickle too tight. The next day prices fell off like the proverbial lead balloon. It happens. But the next time you can be sure I'll give Cattle the extra nickle of elbow room. ;-)

The charts are still the best teachers...if you're paying attention.

Erich
http://www.tradershelpingtraders.net
http://www.supportandresistance.com