High Volatility Sessions

Source: http://www.smbtraining.com/blog/extraordinary-situation-ordinary-trade

"If you are a trader who scales into positions, this is a possibility for position management that we don’t discuss very often. If you hold a partial position, you can elect not to add the remainder, give the trade a larger stop, and still take a no-larger-than-anticipated loss on the trade. This technique should be reserved for those rare situations (less than 1 out of 100 trades I would say) where a market is more volatile than you had anticipated and you decide it needs more room, and the key is that you must be able to limit the loss to your initially planned loss."

"The second problem emerges if you don’t execute at your stop price. Why might this happen? Newer traders will often see a stock get to your stop price and then decide to “give it a little more room” or “just wait a minute and see what happens” or “decide to get out when it comes back above my stop”. I can tell you where this road leads – to a blown out account!"