Energy Transfer LP (ET)

[stocktrademan]

Look like youre wrong..

IMO

I think you're correct there, but with a tight stop on the divergence trade it is okay. I think of it as scraping my knee once in a while compared to falling off something like most people do so to speak when the trade is wrong.

In my opinion it is okay to be wrong initially with the trade. Simply trade the other way when it reverses, expecting it goes much farther in the new direction. After that then well maybe it is chopping around and so find something else.

One good trade can take out a dozen or more of those small stop-outs. Most people don't want to be wrong ever in the chart trading, I don't care as long as the end result is a profit.

This summarizes a good way to trade divergences with stops that I think is good to consider. The targets they recommend seem better for the forex market, rather then stocks however where charts run more.

http://www.profitf.com/articles/trading-methods/divergence/