Originally posted by Dave K
Don I'm sure you've discussed this to some extent before, but are your reasons for exiting you positions purely based on market indication and the tape, or do you have a certain profit or loss in mind.
The reason I ask is that on Wed. and Thu. it looked like you were only averaged about .08-.10 cents on your winners, but on Tues you took a .30 hit in GS.
Are you just just scalping on 2000 shares to make the quickest profit? If you are, how would you manage the losses when they go .30-.40 against you?
OK, remember that the "opening only strategy" is a high probablilty "entry" ...and the exit is the "art"....in the case of multiple fills at the open, I will likely place "stop winners" to capture the "slingshot" effect (quick reversal then back in the opening direction), while watching the tape on other stocks. If things are going well, then I simply remove the bid (offer), and update to a better price. My exit strategies are based on overall market conditions, sector movement, and simply "knowing" how the stock trades (this is the most important aspect of tape reading...knowing your stocks well).
The number of cents or "profit" is secondary to good exit points.
Don