Whipsawed

𝗘𝘃𝗲𝗿 𝘀𝗲𝘁 𝗮 𝗽𝗿𝗶𝗰𝗲 𝘁𝗮𝗿𝗴𝗲𝘁 𝗼𝗻𝗹𝘆 𝘁𝗼 𝗴𝗲𝘁 𝘀𝘁𝗼𝗽𝗽𝗲𝗱 𝗼𝘂𝘁...𝗮𝗻𝗱 𝘁𝗵𝗲𝗻 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗵𝗶𝘁𝘀 𝘆𝗼𝘂𝗿 𝗹𝗲𝘃𝗲𝗹 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗱𝗮𝘆?
You’ve just been 𝘸𝘩𝘪𝘱𝘴𝘢𝘸𝘦𝘥. And it’s not just a speculator’s problem.

Plenty of physical companies set price targets (limit orders) for their contracts. Some rely on technical analysis. Others use fundamental data. And some just go with gut feel or aim for a certain profit margin. Whatever method is used to calculate those levels, most will pair them with stop-loss orders to cap potential losses.

𝗕𝘂𝘁 𝗵𝗲𝗿𝗲’𝘀 𝘁𝗵𝗲 𝗰𝗮𝘁𝗰𝗵:
Well-placed stops protect you. Poorly placed ones can end a good trade too early.

If you don’t give your trade enough room to breathe—especially in today’s highly volatile environment—you risk getting stopped out 𝘣𝘦𝘧𝘰𝘳𝘦 the market resumes its intended path.

This is the classic whipsaw: stopped today, target hit tomorrow.

So what’s the solution?
If you're going to run risk, make sure your stops account for normal price swings. Not unlimited downside—but enough room for the market to move before settling back into trend.

If your (or your company’s) risk appetite can’t absorb that volatility, you might be better off just taking the current price. Otherwise, more often than not, your stop will get triggered… not your target filled.

𝗛𝗼𝘄 𝗱𝗼 𝘆𝗼𝘂 𝘀𝗲𝘁 𝘀𝘁𝗼𝗽𝘀 𝗶𝗻 𝘃𝗼𝗹𝗮𝘁𝗶𝗹𝗲 𝗺𝗮𝗿𝗸𝗲𝘁𝘀?
Do you rely more on TA, fundamentals, or feel?