Even if you put it all on at once and take it all off at once you are still scaling in and out of cash in your account. If you are averaging in each individual trade is in your definition all in. Ok, let's say it's not 100% of your net worth but only 10% in your trading account and it comes to 100k. So, unless you bet 100k on the first trade you are scaling in. It really doesn't matter if you put one on and take one off or put one on and then put another one on. Each trade is an all in decision on that particular position, but size and distance and time are all scalable.
At what point do you start thinking to take some profit off the table?
- Thread starter Sam Farmagham
- Start date
%%
Great question; books have been written on the subject.If you are getting dividends....... profits run.And any kind of leverage, you may have to sell sooner. I remember Don Bright [Day]Trading Co, but he had stock investments in his ROTH-Retire whatever account.If you are serious about holding longer; monthly charts can help, in a bull market,better look @ >> than that in a bear market. This past 7+/ days has been unusual uptrend; have no regrets+never bet the farm, Mr Farm agham
HUH?
Yeah indeed.
Some reflections:
- Because people have so much problems in finding out when to take profits, it means that at least they make profits. This problem can only occur when you have profits, so...
- You see almost everybody makes profits on ET! it is not a legend, it is a reality!
- I hope they know when to take losses, because that can be more problematic .
Hey, you're the one that made the statement that the only proper way to trade is put it all on then take it all off and scaling is improper. Once you comprehend that everybody is always scaling into or out of something you won't need pink letters.
Taking early profits to me is a horrible habit and is one of the main reasons I'm not a standout trader. I'll often get into a trade and if it doesn't start moving within the minute I'll Start dumping to reduce risk. The other habit is having a stock move 10 cents my way and dumping half my position if not 80%.
One of the things I've done recently to combat this is upping my scanner criteria for better quality plays. So now when I'm in I think "imagine how pissed you will be if you sell now"
One of the things I've done recently to combat this is upping my scanner criteria for better quality plays. So now when I'm in I think "imagine how pissed you will be if you sell now"
Attachments
Dont scale. Taking losses on full positions and profits on partial positions skews the math against you. It becomes a game that over time you can not win. Exit a trade by going to a lower timeframe and looking for price to consolidate. Look for formation of short term support and resistance as an indication of the consolidation. If your market has it you can also confirm the consolidation with reduced total volume. Keep on mind that an exit in no way prevents a re entry if a new set of entry conditions presents itself.
The problem with taking quick profits is then the only thing you hold for a while is a loser.
you buy one, you sell one, you buy one, you sell one. 4 trades
you buy one, you buy one, you sell one, you sell one. 4 trades
See the difference?