Early exits are killing me.

tradersaavy · Jun 25, 2003

I had (still have at times) this dilema of not letting winners run.

For me, it was overcome by believing in my system. After time, and seeing that my trading system works, now I can let them go with the belief system.

Sounds simple but it's make it or break it.

EMini-Player · Jun 25, 2003

Some further notes on my trades:

Buy CVTX @ 30.41 8:41:43 AM
Sell CVTX @ 30.44 8:42:45 AM

Hit a high of 31.47 later in the day. I could have made at least $500 on this one.

Buy NVLS @ 35.87 8:45:01 AM
Sell NVLS @ 35.82 8:47:45 AM

Hit a high of 36.33

Buy BRCM @ 24.55 8:52:58 AM
Sell BRCM @ 24.61 8:58:23 AM

Beautiful morning for this one. Hit a high of 25.05

Sell QQQ @ 30.07
Cover QQQ @ 29.97

Went down to 29.50. I was expecting this to drop to 29.85 at least, but covered due to lack of time in the afternoon.

-FastTrader

OVERtheLINE · Jun 25, 2003

if your trading OTC.. try not having the level 2 screen up
on your positions...know where you will get out and do it
the market makers are MASTERS at getting people to bite on tricks
on the L2 screen

EMini-Player · Jun 25, 2003

OTC? Please explain. I'm currently not using Level II quotes. Used to have Level II but haven't ordered the Level II feed through IB yet.

-FastTrader

OVERtheLINE · Jun 25, 2003

Quote from Fast_Trader:

OTC? Please explain. I'm currently not using Level II quotes. Used to have Level II but haven't ordered the Level II feed through IB yet.

-FastTrader

otc is over the counter or nasdaq...
If your not using L2, forget what I said...Im glad to see
somone else that dosent use l2 quotes on nasdaq

EMini-Player · Jun 25, 2003

Quote from OVERtheLINE:

otc is over the counter or nasdaq...
If your not using L2, forget what I said...Im glad to see
somone else that dosent use l2 quotes on nasdaq

That's what I thought you meant (over the counter), but I thought OTC stocks were mostly penny stocks and I usually trade stocks between $20 and $70 so was a little confused for a minute. But, yes I do mostly trade Nasdaq stocks since executions/fills are better than NYSE but I do not use Level II at all.

-FastTrader

Salzburg · Jun 25, 2003

Break Out,

I've seen you post your advice on shooting for a 3:1 risk-reward ratio a couple of times now, and it makes sense to me. If I kept commissions really low (e.g. IB) getting a 3:1 return on initial risk would mean that I'd only have to get about 30-35% winners to be profitable over time. Am I getting this right?

You've also said, if I remember correctly, that you now pretty much trade only with the trend. Are you trading retracements in trends? Are you truly able to get the 35% winners to make it work with a 3:1 ratio? Do you think it's possible to do better than 35% winners using a trend-following approach?

I'm asking these questions not to cast doubt in any way. I would just really enjoy hearing that this "recipe" works because it happens to represent the point I've stumbled to thus far in my studies.

In other words getting confirmation from you would boost my confidence to keep plugging away at it.

Philip

EMini-Player · Jun 25, 2003

Any thoughts on my morning trades?

-FastTrader

Tbill1 · Jun 25, 2003

FastTrader,

How do you expect to maximize your profits if you have time restraints (your job) that force you to exit your trades?

EMini-Player · Jun 25, 2003

Quote from Tbill1:

FastTrader,

How do you expect to maximize your profits if you have time restraints (your job) that force you to exit your trades?

I expect to build my trading skill to a level where I can make $1K within the first hour. It's do-able. I see the moves all the time right in front of my eyes. Just have to start pulling the trigger more quickly, and then have a good trade management plan.

I will also increase the use of trailing stops so that I can stay in a position even if I have to leave for work.

-FastTrader