I did not enjoy getting stopped out, but the developments of crude oil gave an ample proof of the usefulness of stops. Having that stop kept my loss to a minimum.

I have a long position on Rex Intl (21st Nov 2014) and long position on Keppel Corp (17th Nov 2014). You can follow the link to read Keppel Corp and Rex Intl position.

Let’s take a look at how these 2 trades developed….

On 25th Nov, Keppel Corp hit my $9.3 target but I did not take profit.

I have forgotten one powerful English word “Enough”.

You can see from Keppel Corp chart, shares price start to go downhill after hitting the target. I was right but i was hoping that it continue to go further up.

Today I cut my loss at $8.79.

Again, I failed to take profit when Rex intl was 0.43/0.435.

Today I cut lose at 0.40

My key lesson from these 2 trades - the value of using hard stops. A hard stop had sharply limited my loss; without it, my loss would have been several times bigger.

I wish I had a method that won in every trade, but until I find that miracle, I'll continue to use stops.

Best wishes.

Divergence Trader

The post How I Managed my Trade – Keppel Corp & Rex Intl appeared first on Divergence Trader.