I always try to hit a 1:2.5+ risk/reward ratio.
1. Should I accept that a stop loss "has a job to do" and just let it do it, i.e. if it gets triggered, so be it? Or should I close my position when things appear to be going against me? Personally, I'm inclined to let a SL be triggered in order to try and reach my RR.
2. When people say, "cut your losses" is that the same as saying, "have a stop loss"? Or are they saying you should try to avoid having the SL triggered?
I welcome your opinions. I think a SL should be seen as a sunk cost, the price of entering a position and once you're in a trade, to let it run for better or worse. What do you think?
1. Should I accept that a stop loss "has a job to do" and just let it do it, i.e. if it gets triggered, so be it? Or should I close my position when things appear to be going against me? Personally, I'm inclined to let a SL be triggered in order to try and reach my RR.
2. When people say, "cut your losses" is that the same as saying, "have a stop loss"? Or are they saying you should try to avoid having the SL triggered?
I welcome your opinions. I think a SL should be seen as a sunk cost, the price of entering a position and once you're in a trade, to let it run for better or worse. What do you think?