Of course, in such long term trading then yes you make a valid point. However, in shorter term time frames such as in intraday trading that makes little logical sense because of mean reversion... whipsawing ...etc. Best to take profits and enter again if the move resumes. 12 points intraday is a good move for intraday. No if ands or buts about it. I get the market giving me 12 points or 14 points intraday on a big spike I am gonna lock that profit in and simply enter again if the move continues. Comm are minimal.
ES Journal - 2017/2018
- Thread starter Buy1Sell2
- Start date
- Status
Exactly ..rules are for the trader....that is why the main rules for me are SL and following the PA of the market. Stop losses are to protect me from me. I can define my stop loss exactly. I can't define with absolute certainity the PA yet to come but i can anticipate it with a 40% to 60% probabilty. Therefore, how it unfolds real time then in turn defines my profit taking. And as price action unfolds my extrapolated original PT based on the present information i have. As the PA unfolds that can change. And even my SL can be adjusted such as in trailing stop...etc.
Absolutely I agree with you if day trading and make a homerun trade when you going for few points. But when you swing trading and taking it overnites, 14 points might be half of what someone gets in a normal profitable trade. Like if you bought on close of Dec 30, you could have had 20 points on Jan 3rd, but if your system says to stay in longer and you didn't, you lost the other 20 points on Jan 6th.
I am not aware Buy1Sell1 is a day trader though.
Only trailing stops I ever use is locking in one tick, either I am back testing wrong all these years, but trailing cuts my profits. Scalping you get so little for the risk, so you have to lose much less, and only method I have for larger day trading profits is opposite, many small losses for greater profits and losing percentages much greater. If it didn't cost so much time to hedge when day trading, I would, but by time you find right options, price has hit the target or gone down 6 ticks. If I didn't have rules, wow, I'd be like emg.
As Plato wrote..."You cannot step into the same river twice,"
Nothing complicated about it. There are many Swing High Swing Low trades on a 5 minute chart. In general I define an intraday swing trade as a move with 2 legs to it.
I thought in his original first post he said something about wanting to learn about intraday movements daytrading???
- Status