DXNS and stop losses and daylight robbery

Boxhead,

The explanation is the SP retraced to fill the gap created on opening the day before: it closed on the 15th at 36.50 and opened on the 16th at 39.00, which created the gap. These are frequent occurrences and usually get filled, hence the movement you observed.
On the subject of stop losses, take a look at the chart.....

....from the low at 25.42 there are clearly 4 swings marked, the low of the 4th swing being at 34.95. Your entry for this trade should be on exceeding the low of the previous day: 36.16 (point 1); personally I would wait until you get a higher low than point 1, hence point 3 would be my choice. The stop loss should be below the 4th swing low at 34.95 (point 2).

Morning all

I would like to hear some views on this. I am perplexed in general about how to place stops and I have become suspicious of how I have suddenyl been 'stopped out' of trades on occcasions when the price suddenly shoots down for no apparent reason in the middle of a nice up trend. I bought myself some DXNS for around 36p or so a week or two ago and as you can see on the chart below it turned out fairly well given that I sold into the big rise on Friday. However I noticed in the course of the day that there was a sudden big fall down to the 50 day MA and then up it went again in less than a minute. Now I didn't have any stops in place which is pretty lucky really because I would have been robbed blind if I had a stop in any meaningful place. I didnt have a stop because this has happened before and I have lost out big time when for no apparent reason down goes the price and up it goes again with some cheeky bugger in a suit seeing loads of stop losses including mine on his screen decides to go on a fishing trip and scoops up loads of other peoples money and makes off with it all.

Am I being paranoid ? Surely I cant be the only person that this happens to. I would very like to know the experiences of others. There is a link to my chart below to illustrate Fridays events


www.dropbox.com/s/dtanjytbrjrj6h7/DIXONS%20RETAIL.png