My momo system is simple... anticipate stochastic turns, cut the losses extremely quickly (depends on the animal...something like TASR you might want to give a $.40 to .60 range, but something like IACI you might only give $.08).
The rule of thumb that has been working for me is that if the trade doesn't 'feel' right, kick it out and move on...
The times I end up losing too much on a position are generally 'revenge' trades where I traded the same damn stock well more than twice, because I keep reversing my position or believing the original position was just about to work... When I realize Im about to do something like this, and stop myself, I am quite certain I have just saved my trading day...
Hope that helped...
-- Gene
The rule of thumb that has been working for me is that if the trade doesn't 'feel' right, kick it out and move on...
The times I end up losing too much on a position are generally 'revenge' trades where I traded the same damn stock well more than twice, because I keep reversing my position or believing the original position was just about to work... When I realize Im about to do something like this, and stop myself, I am quite certain I have just saved my trading day...
Hope that helped...
-- Gene
