Getting out - Am I Doing the Right Thing

Flashboy · Jul 16, 2003

I got short the Emini this morning at 1002.00.. after the close of the first 5 minute bar..

But I got out at 1001.25.. after the market looked like it wanted to rebound. I am always quick to get out of positions that aren't going my way like this one to keep from losing capital.

My motto of trading is to make sure you protect what you have and the profits will come..

As you can see the emini dropped another 12 points.. and looking back in hindsight its easy to see that if I kept my original stop and moved it down right above every swing high on the 1 minute chart I would still be in the trade..

How do you guys handle this?? Do you find it best to always trail a stop.. or is it better to get out when the market isn't going your way right away??

Any help appreciated.

Jeff

ROCK SOLID · Jul 16, 2003

Quote from Flashboy:

I got short the Emini this morning at 1002.00..

But I got out at 1001.25..

As you can see the emini dropped another 12 points..

ROFL!!!!!

ROCK

prox · Jul 16, 2003

If you followed your rules, then the trade is fine.

This, of course, presumes you've actually put the time and effort into developing a system that has a positive expectancy.

As for trailing stops, I prefer to base it off market structure or a loose X bars back low/high.

MarathonTrading · Jul 16, 2003

Very good traders take a lot of small losses and a few big winners on days like today.

Can you accept to let slip 5 times a profit of 1 point, even if the 6th trade is a 10 points winner?

candletrader · Jul 16, 2003

0.75pt on the ES is noise, unless of course your strategy is defined as scalping for 0.75pt...

You need to remove your emotions as much as possible from your entries and exits, or you will not make it past the learning curve...

There are many sensible ways to run profits, and any of those ways is superior to relying solely on your emotions...

inandlong · Jul 16, 2003

Quote from MarathonTrading:

Very good traders take a lot of small losses and a few big winners on days like today.

Can you accept to let slip 5 times a profit of 1 point, even if the 6th trade is a 10 points winner?

.... all you need to know.

dbphoenix · Jul 16, 2003

Quote from Flashboy:

I got short the Emini this morning at 1002.00.. after the close of the first 5 minute bar..

But I got out at 1001.25.. after the market looked like it wanted to rebound. I am always quick to get out of positions that aren't going my way like this one to keep from losing capital.

For now, whether you use a trailing stop or not isn't as important as your fear of losing capital. As long as your exit strategy is determined by fear, you're going to have problems with self-control.

Apparently you don't trust your strategy enough. Why is that?

Sarasota · Jul 16, 2003

You guys that either scalp or make all of your trading decsions off of one and three minute charts are nuts. This may not be the case with you. Don't worry, I got out early too....at 993.25.

Quote from Flashboy:

I got short the Emini this morning at 1002.00.. after the close of the first 5 minute bar..

But I got out at 1001.25.. after the market looked like it wanted to rebound. I am always quick to get out of positions that aren't going my way like this one to keep from losing capital.

My motto of trading is to make sure you protect what you have and the profits will come..

As you can see the emini dropped another 12 points.. and looking back in hindsight its easy to see that if I kept my original stop and moved it down right above every swing high on the 1 minute chart I would still be in the trade..

How do you guys handle this?? Do you find it best to always trail a stop.. or is it better to get out when the market isn't going your way right away??

Any help appreciated.

Jeff

inandlong · Jul 16, 2003

You guys that either scalp or make all of your trading decsions off of one and three minute charts are nuts.

Well.... let's just say "trade very aggressively" or something like that.

acrary · Jul 16, 2003

I guess it all depends on what you're playing for. I play for the daily range. I use loose stops until I think the daily range is in and then I tighten. The range so far is 16.5 and I think a little more range is likely. My stops are now set above the pivot of 992. When I think the range is in then I'll tighten with a trailing stop and exit no more than 3 pts. from the low.