[lesson] usefullness of stop loss illustrated

Foreword
executed a few stop loss trades feeling very sad.... because instead of closing the gap of my loss for 2016, i widen it a fair bit. but i am going to illustrate it.

Point illustrated: "Stop loss saved my ass"

Example #1
i was in YOMA strategic for some time, entered at 60.5c, and then had a SL at 57.5c. i made some loss, but subsequent days YOMA just crashed down. as of today 18 Nov 2016, the price of yoma is 51.5c. I've saved myself of nearly 10% of capital(delta of 6c).

Example #2
took in MM2 ASIA because of its growth stock characteristic. however it hovered, and it seems like it cannot sustain itself, and dropped below my threshold. and i cut off at 45c.  though today it rebounded a bit, to 45.5c. i am glad that i saved myself some sleepless nights and anxious working days.


Point to note * updated*
In the trades mentioned above, those counters were high probability trades, and the drop in price could be characterized as a dip. however i chose not to believe in a dip in uptrend as indicators of a down trend were present.

In example #1 which the trade idea is a break-out, the fluctuation during the consolidation is normally small, and there was sort of a lower highs if u look micro-ly. hence when my support was broken, i just went to cut the position.

In example #2 it is a up trending counter, respecting the dynamic support line, but when the counter hovered downwards instead of horizontally, i half suspected the trend was reversing, and the double top bearish reversal ( circled) gave me more suspect that it was going down, so i exited to prevent further losses.

Additional points learnt " set an expiry to trades"
I was glad i did a review of my strategy ( see here ) just last week, and it reinforced and crystalized this market wisdom. last point to note, was that i realized i need to set time-frames, because the trade not turn up within a set time frame, e.g. me trading sma5,10,20 , and no action in within 3 weeks suggest that my trade idea has also been invalidated, and i could have saved myself more pains,
*will illustrate it when i have more time"

Overall
although the last week has made me drift further from my goals, i have learnt by the hard way some more wisdoms of trading. i hope to learn some new trading technique over this coming weekend!