Missed the move? Don't chase it. What to do instead

You missed the move. Now you're chasing it.

That's often right when it turns around.

Chasing gives you two problems: a bad price, and a far stop.

Real gold chart, October 9. Gold ran from 4105 to 4207 in about half a day.

You see it late and buy at 4200, near the top.

Your stop belongs under the base, around 4170. So, 4165.

Gold, 1 standard lot: price moves 1 dollar, that's 100 dollars. At 0.1 lots, 10.

That's 35 dollars of price to your stop. At 0.1 lots, 350 dollars of risk.

Then it turned. Gold dropped to 4168, over 30 dollars below your buy.

The better move: wait for a pullback to a level. Here, back into the base.

Buy at 4175 in the base, same stop at 4165. 10 dollars of price, 100 dollars of risk.

Same idea, same stop. 350 dollars of risk versus 100.

From there, gold worked back above 4200.

And if it never pulls back? Skip it. There's always another trade.

Save this. Missed it? Don't chase. Wait for a pullback to a level. No pullback, no trade.

Your turn. You missed a move. Chase it, wait for a pullback, or let it go? Comment below.

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