Let’s keep this FTV trade in perspective—it’s frustrating to lower our stop two days in a row only to get stopped out, but that’s part of the process.
Last Thursday, we entered a half-risk position in the stock at 5885, with an initial stop at 5716, representing a $1.39/share risk.
We sold one-third of the position for a $0.55 gain, which effectively reduced our cost basis to 5867.
Yesterday, the stock gapped below our intended stop of 5833, so we waited five minutes after the open and adjusted our stop to 5792.
Today, it gapped below that adjusted stop as well, so after another five-minute wait, we lowered the stop again to 5734.
The position was eventually stopped out at 5732, resulting in a $1.53/share loss on two-thirds of the position.
Overall, the trade ended with a net loss of $1.35/share, just under one half-risk unit.
It’s worth remembering that this strategy has kept us in many trades that turned into major winners. You either trust the process, or you second-guess it and focus only on when it doesn’t work. There’s no such thing as perfection in trading—but this remains a sound, proven approach and a core part of our system
