What I do after i'm in a position is wait for it to approach a profit target or wait for the tape to tell me i'm wrong, not ask myself over and over "if i were flat right now would i buy this again". I'm not knocking that strategy if it works for you.
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Confessions of a successful trader
- Thread starter StLouisTrader
- Start date
What I do after i'm in a position is wait for it to approach a profit target or wait for the tape to tell me i'm wrong, not ask myself over and over "if i were flat right now would i buy this again". I'm not knocking that strategy if it works for you.
Quote from StLouisTrader:
What I do after i'm in a position is wait for it to approach a profit target or wait for the tape to tell me i'm wrong, not ask myself over and over "if i were flat right now would i buy this again". I'm not knocking that strategy if it works for you.
The reason I ask is because it almost sounds like you don't have a well defined stop.
I don't "ask myself over and over again" about my positions but I will bail out if I realize that it things have changed.
Based on the spike reversals in the markets this morning and the selloff from the highs on good econ data you can bet the market has topped out and will be reversing this afternoon.
Quote from flipflopper:
The reason I ask is because it almost sounds like you don't have a well defined stop.
I don't "ask myself over and over again" about my positions but I will bail out if I realize that it things have changed.
Based on the spike reversals in the markets this morning and the selloff from the highs on good econ data you can bet the market has topped out and will be reversing this afternoon.
Got ya, i usually try to give stocks a decent amt of rope early on until the trading starts to get a little more efficient, then i might set my stop at the low of the day. As the day goes on, i continue to tighten the stops further. Example, at this point (with the stock at 21.53) if the orcl were to break 21.40, i would consider myself wrong and bail
Quote from StLouisTrader:
Got ya, i usually try to give stocks a decent amt of rope early on until the trading starts to get a little more efficient, then i might set my stop at the low of the day. As the day goes on, i continue to tighten the stops further. Example, at this point (with the stock at 21.53) if the orcl were to break 21.40, i would consider myself wrong and bail
My problem with that is what if shit goes haywire early on (which it usually does). I have many times averaged into a position just like you near the open only for things to go so bad so fast that I take a much bigger loss then anticipated.
One of my "holy grails" of trading is that I only trade half my size in during the first hour (no adding) to get warmed up then I hit bigger in the afternoon.
The incredible thing about trading is that every trader is different just like every person is different and you have to find out what works for you.
Good luck
St loui, out of curiosity how much is in your trading account?
Awesome Trade StLous. If this market can bounce should be cake. Regardless looks like you won't get stopped.
"My problem with that is what if shit goes haywire early on (which it usually does). I have many times averaged into a position just like you near the open only for things to go so bad so fast that I take a much bigger loss then anticipated"
Yep, that happens on an all too regular basis. Those days are painful. Usually i average in for awhile then capitulate and blast it all out if things continue to go wrong. For me it's (a not so great) part of process. I guess I have to make enough on the good trades to compensate for these and still have a profit.
Yep, that happens on an all too regular basis. Those days are painful. Usually i average in for awhile then capitulate and blast it all out if things continue to go wrong. For me it's (a not so great) part of process. I guess I have to make enough on the good trades to compensate for these and still have a profit.
Quote from flipflopper:
Awesome Trade StLous. If this market can bounce should be cake. Regardless looks like you won't get stopped.
I'm not counting chickens. If mkt keeps rolling over (like u predicted), i can still end up a big fat loser. I'm moving the stop up to 21.49 so if turns bad at least will now be able to limit the loss.
Got smoked out earlier on the orcl dip below 21.55. Daily PnL of breakeven.