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Scaling out of a loser is dangerous. By doing this one increases unnecessary exposure to a bad trade.. All traders know that if the trade is not profitable immediately chances of a real winner drop off significantly. --MIKE

Well said, but here is where I disagree. I dont measure how well I do at the end of day. One day is insignificant to measure performace. I look at weekly and preferably monthly performace. I dont understand what you were refering to as to why scaling out does not smooth out your equity...

So I guess here is the real question: What's more important in really making it as a professional trader? Net dollar amount at an optimal profit at the expense of huge drawdown? Or optimal smoothness in equity curve and minimizing drawdown? I think for your avg trader.. the smoothness...

I agree 100% of what you are saying. This is the biggest problem with scaling out.. taking only a partial profit, at the expense of taking the full loss. There is no partial loss. But here is the point. What's really important is not the dollar amount profit in trading, but the manner in...

Interesting idea... I was wondering whether if one scales out of positions for profits they in effect smooth out their equity curve. If one risks 1R for a trade.. and begins to scale out at 1R profit and then trails the rest of the profits.... in my opinion they are smoothing out their...

I am studying this exit... which I read off the tradingmakets.com website. I also would like to know if there are any traders using it.. and how it performs in real trading. Its basically exiting half your position when your initial risk has been met. So if you are long 1000 shares at 50 and...

I am studying various swing trading strategy and I am curious as to whether anyone employs the stop and reverse technique to their trading? If so, is it a good idea how does one properly use it? Anyone have success with it? --MIKE

Hmm.. isnt the next post supposed to ask.. what company do you own? LAME --MIKE

How in the world is this guy still managing money? I bet when his fund is gone we will hit bottom! goto http://www.jacobinternet.com./performance.html check out the YTD performance for yourself... --MIKE

In the confines of a professional trader.. what you just posted is worthless. Why dont you show us a track record or some type of long term performance. Flashing a weeks performance is pissing in the wind. Lets see max drawdown, expectancy, risk to reward.... If you wanna show off.. do it...

Please goto the thread "The big buck is made in the long term!" We discussed this issue of daytrading vs position/swing trading elaborately. --MIKE

Sarasota, Every time I read ET I always see a post of you claiming to make a very high point game for the day. Would it be possible if you start a journal or open a thread and teach us traders what your edge is. Or perhaps call some trades realtime during the day... because your...

Quah, how did your system do today? --MIKE

Honestly, I dont know. Perhaps we can backtest several variations of this pattern and see how it does. My hunch tells me it would work 60% of the time.. with an impressive risk/reward. You can modify this idea in many ways. For example, stock needs to be above 200day MA or 50day MA. Need a...

Means the close of the day is greater than 75% of the daily range. If the high is 100 and low is 50 the close must be at least 87.5. -MIKE

Just got off the phone with a top NYC trader.. and we discussed different trading techniques. I thought I would share this idea with all the swing traders on ET. He was telling me one of his favorite long patterns and trade setups as an EOD swing trader.. and he claims thoughout the years its...

Stocks would not work with his system. Mainly because of the uptick rule when trying to short. I think it would ruin the edge. Also fills will be crappy and they wont be as definitive as trading the ES/NQ. If you only scalp.. the NQ/ES is the only place where I think a purely scalping...

I think he used the headset to communicate with another trader not his broker.... I know many traders that go into conference on the phone and wear headsets.. I think they did a decent job on the story.. Firstly, they showed a profitable guy not 90% of the other losers.. the guy was trading...

Try using his method for the first time and you will see why traders using TWS need an automated mechanical system. In realtime its not easy... Personally I get nervous when I have to click a buch of Transmits in seconds.. just seeing all of those orders waiting gets me uneasy.. because I know...

I agree homebuilders puting in their top. I would only short the rallies into key resistance.. avoid shorting weakness with these guys. --MIKE