Hey Akil, there was a good example of why to close daytrades on a Friday evening. I took the AUDUSD 60 min trade we have been talking about in the room on Friday. The market went down, showed a 38.2 treracement, went sidewards in a range and I sold the breakout of the range. A few minutes before closing the market it reached my T1 which was +58 pips. I then moved stops to break even. Sunday evening on markets opening I got stopped out with the second position at -68 pips because of  the over-weekend-gap .... So this overnight gap tuned a 58 pip winner on t1 to a losing trade overall ... This is another point to change my trading plan. Maybe this would be interesting for the people in the room or on your blog ... Feel free to share if you also find this story helpful for others ...
 


Comments

Roy
04/03/2012 4:01am

Thank you for sharing Danny, a lot of us take our protective stops for granted without thinking about the possibility of a price gap. Your experience is a great reminder and lesson in proper trade handling, an area I personally need to work on. Thank you

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Chris
04/03/2012 4:20am

This example shows the importance of using a broker such as Oanda, which executes the order (in this case the stop loss) even during the weekend, with a spread of 10 pips...
In this case, Danny would have preserved its target 1 gains ;-)

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Nuno Leitão
04/03/2012 4:43am

Never had tought on this... thanks for the heads up, i bet i'll never forget it. More backtesting on the way about weekend gaps!

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Andrew
04/03/2012 4:53am

Thanks for sharing your story Danny - an excellent lesson.
Plus, Chris, thanks for the heads up on Oanda, didn't know that.

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Mike
04/03/2012 6:10am

Same deal here, first time ive had this happen. I might see a small gap, but not like this. Good start to the week huh.

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