{"id":52170,"date":"2016-04-17T05:06:02","date_gmt":"2016-04-17T12:06:02","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=52170"},"modified":"2018-03-25T03:16:31","modified_gmt":"2018-03-25T10:16:31","slug":"handling-losing-trade","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/handling-losing-trade\/","title":{"rendered":"Ask Al: Handling a losing trade"},"content":{"rendered":"<h2>Losing trade &#8212; managing a short<br \/>\n BPA trading room Q&amp;A: February 10, 2016<\/h2>\n<p class=\"content-box-green\">Question:  I shorted the 7 high on bar 10, betting that the rally would end up as a wedge top.  I shorted more around the 12 high, Ok, and I was stopped out at near the top of 13.  Can you explain how you would have managed my trade better if you were in the position?<br \/>\n <em>Video duration: 2min 41sec<\/em><\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/7c9adfbb1318e7c5f4\/845c11870951f9f9?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/68x9C8grB60\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube Channel<\/a> if needed.<\/p>\n<h3>Look for measuring gaps<\/h3>\n<p><a href=\"\/wp-content\/uploads\/2016\/04\/es-chart-ask-al-55-handling-losing-trade.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/uploads\/2016\/04\/es-chart-ask-al-55-handling-losing-trade-300x160.png\" alt=\"ES Chart Ask Al 55 Handling Losing Trade\" width=\"300\" height=\"160\" class=\"alignleft size-medium wp-image-52175\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/04\/es-chart-ask-al-55-handling-losing-trade-300x160.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/04\/es-chart-ask-al-55-handling-losing-trade-768x409.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/04\/es-chart-ask-al-55-handling-losing-trade-600x319.png 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/04\/es-chart-ask-al-55-handling-losing-trade.png 1277w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>So he sold above 7 betting on a wedge 1, 7, and maybe 12 or 13, and here\u2019s the problem with selling the 12 high.\u00a0 I don\u2019t know if you can see it.\u00a0 I\u2019ll go back here, maybe it will be more obvious.\u00a0 It\u2019s the same thing with buying anywhere down here &#8212; there\u2019s a gap &#8212; 72 high, 65 low.\u00a0 Here, there\u2019s a gap, 12 low and 7 high.\u00a0 I mentioned that as it started to turn up. Then I said it might result in a measured move up.\u00a0 So if I sold above 7, I am not going to sell more above 12 because at that point we would have had a potential measuring gap here.\u00a0 And why sell at the 12 high when I\u2019m probably going to be able to sell higher.<\/p>\n<p>I don\u2019t know if the measuring gap is going to be from the 1 low or from the 3 low, but I think there\u2019s going to be some kind of a measured move up based upon this gap 12 low and 7 low.\u00a0 So in a situation like that, if I sell the 7 high on bar 10 and &#8212; who knows, I sell more &#8212; let\u2019s say I sell the 11 close, which I would not, but let\u2019s say I did.\u00a0 As soon as the market tested down 12 and started to turn up, I\u2019m going to buy back my shorts above 12.\u00a0 And guess what?\u00a0 That\u2019s why 13 looks like that because as soon as traders saw that gap below 12 and above 7, they decided it was going higher, so everybody bought back their shorts on 13, and that\u2019s why 13 is a big bull bar.<\/p>\n<h3>Possible measured move up<\/h3>\n<p>When 13 formed &#8212; when 13 closed, I talked about the possibility of an <a href=\"\/ask-al\/v-bottoms-gaps-and-climaxes\/\" target=\"_blank\">exhaustion gap<\/a> compared to a measuring gap.\u00a0 So if anything, I would be thinking about shorting around 13 or below 14, or over the next several bars if we start to trade down.\u00a0 But to me, everyone got out on 13 and that\u2019s the place to get out, so I would not be selling more at the 12 high because we have a gap and it\u2019s probably going to result in a measured move.<\/p>\n<p>A lot of that stuff, you have so little time to decide.\u00a0 13 went up very, very quickly.\u00a0 But if you were aware of what 12 was doing, possibly creating a measuring gap with 7, you would be much better prepared to get out quickly by 12.\u00a0 And if you\u2019re flat, you can quickly buy above 12, expecting the market to go up for some kind of a measured move.\u00a0<\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>Losing trade &#8212; managing a short BPA trading room Q&amp;A: February 10, 2016 Question: I shorted the 7 high on bar 10, betting that the rally would end up as a wedge top. I shorted more around the 12 high, Ok, and I was stopped out at near the top of 13. Can you explain [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-52170","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/52170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=52170"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/52170\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=52170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=52170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=52170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}