Quote from Girlpower:
Reading through this thread again, a thought has occured to me.
Most people at some time or another (me included) are good at getting into the right trade at about the right time, but have difficulty staying in the trade and not being shaken out. I'm sure everyone has or has had this problem.
I've sat down this morning and started to look for ways to stick in a trade better until the correct time to exit. Now obviously this has advantages and disadvantages. The disadvantages being that there then becomes a danger of sticking in a trade you should be exiting asap, so a filtering system is required, and it too will never have a 100% accuracy but may well help those that would be profitable if only they stayed in longer and didn't get shaken out because of the fear of loss factor.
It's just a thought that may help a bit.
Best
Natalie
Natalie,
That's part of the problem...many traders that have good entries but unable to follow along the move...
(wiggle stops them out for small profits)
are already using some sort'uv filter system based on their definition of such.
This is what I think...
too many traders go into the market thinking they are going to catch every or most of the big moves...
unrealistic high expectations.
Sports Analogy: Swinging for a home run or triple at every good pitch.
Another different situation with the same result problem...I know a trader that uses fixed profit-targets...exiting everytime at +2 points if/when he gets it...
Yet...he always complains about missing the big trends...
hello...using fix targets will leave you at the station standing alone EVERYTIME if your discipline enough to apply such a rigid system.
Thus...these traders should never complain about missing the big move because their system is not designed to catch such moves.
For traders that aren't using fixed profit-targets...
a more realistic goal is to try to hit singles...get on base...
every once in awhile...you'll tag a home run.
My personal goal for each month as a trader that doesn't use fixed profit-targets is to catch
only one home run trade...
for me that's anything near or more than a +10 point move in the Eminis on at least 1 contract.
Once again...I don't think the key is a filter system because many traders are already using such via things like adding another indicator, adding another time frame et cetera...
the key is trade management in the exit strategy.
That key can be different to any trader.
For me...that key is position size management.
I have several profit-targets for each group of contracts in a trade...the first group of contracts are design to bank profits and to protect the remainder as it attempts to catch a home run...
more often than not...the remainder gets stopped out at 1 tick better than entry price to cover commissions while I still bank profits on the first contracts.
Simply...that remainder is getting on base but once in awhile...
it nails a home run.
Note: I recommend all new traders or struggling traders trade 1 contract or the minimum shares...
then upon exit of the real trade...
use a realtime simulator to pretend they still have a remainder in the position and try to manage that remainder to build up confidence and experience to trade size...
until their trading account has grown large enough to keep the same risk parameters when they are able to trade size.
This is not a one size fit all solution.
However...if your trade methodology seems suited for such to be integrated into...
along with having discipline...it may merit further research and application.
P.S. Another possible solution is for traders to have a
Re-Entry Method if such signals appear in either price pullbacks (looking for Long position signals) after an uptrend or in counter-thrusts (looking for Short position signals) after a downtrend...
instead of getting emotional, pssst off that can cause missing those re-entry signals.
This thread started via the big downtrend on July 16th Wednesday...there were several failed counter-thrusts in that big downtrend before it found support around 1115am est.
NihabaAshi
