We hit Stop Loss at Breakeven (and made a Profit…)

We hit Stop Loss at Breakeven (and made a Profit…)

We hit Stop Loss at Breakeven (and made a Profit…) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Many beginner traders don’t know when it’s the right time to move the Stop Loss to Breakeven.

The result?

They lose too many trades, all of which could be winning trades.

In fact, knowing when and how to move the Stop Loss to Breakeven is an essential skill that you must learn if you want to be a Full-time Trader.

The best news?

Learning when and how you can move your Stop Loss to Breakeven is rather simple!

In the live trade on TradingView that we discuss below, you can see exactly when and how we moved our Stop Loss to Breakeven.

Unfortunately, towards the end of the trade, the Price Action hit our break-even and so the Trade got closed.

But in the end, we did not lose any money.

In fact, right because we moved the Stop-Loss to Break Even, we were able to earn money!

Trade setup – 26 Feb 2020

We've been stopped out at breakeven Setup 1

The price is in a major downtrend and has already offered two similar opportunities to the one that we’re looking to trade here.

We just had a new impulse down followed by its consolidation that’s taking place.

We just need to wait and see if the price breaks the consolidation down and the indicators confirm the setup as well.

Trade update – 26 Feb 2020

We've been stopped out at breakeven Setup 2

We have the setup because:

    1. The price broke down the consolidation that we isolated
    2. The breakdown candle is red (colored by the Breakout Pivotal Bars)
    3. The bearish Sentiment Index breaks down its trendline at the same time

We set the Stop Loss rather close and we also stay on the aggressive side with the Take Profit level.

This is because we want the trade to be worthwhile which, to us, means to have at least a risk-reward ratio of 2.

Of course, we’ll balance the extra risk by trading safely and by moving the Stop Loss to Breakeven first, and then moving the Breakeven even lower as the price goes down.

Trade update – 26 Feb 2020

We've been stopped out at breakeven Setup 3

The price moved down and then retraced a little bit.

As anticipated, we already moved the stop-loss to break-even so that we’re now in a risk-free trade.

Trade closed – 26 Feb 2020

We've been stopped out at breakeven Setup 4

Unfortunately, the price made a sudden up movement and hit our Stop Loss which, in the meantime, was lowered further.

That’s trading and we accept it!

The trade started very well but then eventually hit our break-even level during a sudden price retracement.

The final return was 0.8x which is rather poor for our Trading Strategy but still profitable.

And this is great because, in the end, the first rule that you should always respect is not to lose money.

Once in a while, situations like this happen but you shouldn’t care too much, because it’s part of trading.

And if you want to become a professional trader, you must accept even a 0.8x profit.

Have you ever been stopped out in your trades?

Feel free to share your experiences with fellow traders by leaving your comment on the YouTube video above!