Multiple Trade Positions Stop Lossed in One Day?

At the TheFreedomTrader blog, I want to be as real and transparent as possible. Showing you the realities of trading.

The good times, as well as the bad times.

When I began this blog, I started showing many profitable trades after another. Why?

It was definitely not to brag, but because that was all that was happening at the time.

Now, I want to show you what is happening and it is not pretty.

For several weeks now, I have shown you individual trades where I was stopped out from time to time.

However, I also want to show you what can sometimes happen. You have multiple trade stop losses all happen at once! Rare, but it does happen. Does it hurt? Off course.

Is it devastating? Not one bit. Why?

Risk management through diversification and position sizing. Yes, I sound like a broken record but these are the realities of trading. Always be prepared for things like this to happen so it never catches you by surprise.

Will this occur again in the future? Definitely.

Here are charts and results of the four stopped out trades I am talking about.

HAR Trade Completion - 9.6.15

Result of this trade;

Trade Exit – HAR, Harman International

Stock Exit @ $119.52 on 9 June 2015 (Blue Shade).

Stock Entry @ $129.28 on 8 May 2015 (Green Shade).

Total Return on Investment (ROI) of -7.55% or -86.11% annualised.

Duration 32 days.

 

HWCC Trade Completion - 9.6.15

Result of this trade;

Trade Exit – HWCC, Houston Wire and Cable

Stock Exit @ $8.89 on 9 June 2015 (Blue Shade).

Stock Entry @ $9.61 on 13 March 2015 (Green Shade).

Total Return on Investment (ROI) of -7.53% or -33.13% annualised.

Duration 83 days.

 

LUV Trade Completion - 9.6.15

Result of this trade;

Trade Exit – LUV, Southwest Airlines

Stock Exit @ $34.05 on 9 June 2015 (Blue Shade).

Stock Entry @ $36.81 on 28 May 2015 (Green Shade).

Total Return on Investment (ROI) of -7.5% or -228.06% annualised.

Duration 12 days.

 

SD Trade Completion - 9.6.15

Result of this trade;

Trade Exit – SD, Sandridge Energy

Stock Exit @ $1.13 on 9 June 2015 (Blue Shade).

Stock Entry @ $1.22 on 29 May 2015 (Green Shade).

Total Return on Investment (ROI) of -7.37% or -244.65% annualised.

Duration 11 days.

 

Combined losses total less than 0.15% of portfolio value, due to stringent risk management through diversification and position sizing based on market view.

I truly hope this post on multiple stop losses shows you the realities of trading and that even the most prepared trades don’t always go in your favour so you need to be prepared for this at all times.

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