Anyone leave SB trades over night

[DavyJones]

Biggest mistake I made was forgetting to close out a trade and waking up to a massive loss  (30xRisk!) due to over night news.  (Wirecard)

However more often that not I have seen trades that I closed out just before market close that if had I left until the next day would have been real winners (10R)  It seems like if I used a Guaranteed stop to prevent the above happening it would have paid off in the long run. I am not sure though. 

Any thoughts 

(PS: I assume a guaranteed stop would prevent this over night risk, right? I never used one ) 

 

 

[Caseynotes]

22 minutes ago, DavyJones said:

It seems like if I used a Guaranteed stop to prevent the above happening it would have paid off in the long run. I am not sure though. 

I've not used them either but yes they are guaranteed but there are a couple of snags, they need to be placed with the trade entry and they can be very wide esp if market is very volatile and you can't put a normal stop in closer to the price as well.

Not sure if you can cancel them at any stage and then put a normal one in.

[DavyJones]

1 minute ago, Caseynotes said:

I've not used them either but yes they are guaranteed but there are a couple of snags, they need to be placed with the trade entry and they can be very wide esp if market is very volatile and you can't put a normal stop in closer to the price as well.

Not sure if you can cancel them at any stage and then put a normal one in.

thanks, I was concerned about if I use them will they take precedent over a normal stop and just charge me the premium every time,  when a bit of slippage would be acceptable.  

[THT]

Yep I have positions open overnight - I trade from daily charts though so just use the futures contracts not the DFB - worst i've been caught by is about 2R

[DavyJones]

13 hours ago, THT said:

Yep I have positions open overnight - I trade from daily charts though so just use the futures contracts not the DFB - worst i've been caught by is about 2R

I see, smart move. Hertz cost me big time. 

trading from daily is a lot safer as one is not so leveraged. My mistake was working from 15 min charts, stock proceed to do nothing all day but the next day it moved a 1 - 3 standard deviations  of the daily. Naturally that equated to a magnified loss on a smaller time frame 

 

[THT]

1 hour ago, DavyJones said:

I see, smart move. Hertz cost me big time. 

trading from daily is a lot safer as one is not so leveraged. My mistake was working from 15 min charts, stock proceed to do nothing all day but the next day it moved a 1 - 3 standard deviations  of the daily. Naturally that equated to a magnified loss on a smaller time frame 

 

Yeah - That's one of the reasons I prefer to trade daily charts and the fact that I'm exceptionally lazy and can't stand being tied to a screen all day

Slippage and gaps are a cost that need to be factored in