I believe in R:R Like pigs can fly, you don't have a clue if trade with work out and same goes with Risk/Reward, you can make all the predictions you want, but they meaningless, only thing I can guarantee everyone, we will all die one day. Only your stats of what has happened in past can help, smaller the timeframe, smaller the profits normally, trade off weekly bar charts, can expect much more. Timeframe to me means trade duration, I have zero patience in day trading as you getting in during chop, it either takes off and can make decent or get out and make a tick. but long term have patience like a 100 year old tortoise, and getting near that age each day or feels like.
Gotta love ZERO RISK in the SP500 = $$$
- Thread starter makloda
- Start date
Thats B.S. Stocks trade in ranges based on support and resistance, you can always buy or sell at support or resistance, with a profit target at the next support or resistance, that way you know that either A) support or resistance will hold, or B) support or resistance will break, stopping you out for a small loss, so you know exactly what your risk is, and if it bounces and goes the other way you know where your first support/resistance line is, bottom line is if your buying or selling on support/resistance levels you always know exactly what your risk is and theoretically it could go the other way forever, but you can determine your reward based on the first support/resistance the other way, then you can always try for more.
The onyl way what your saying would hold true is if a stock just went sideways forever.
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Agreed, it's very important to know when you are wrong, and to know it as soon as possible.
It's a shame that you lost your position. Sometimes if I miss the entry, I'll take a position and trade around it, using the gains to "offset" my entry loss.
It's always easier to hold if you see green in the account.
Edit: First take profit hit @ 2112 moving partially out of the position.
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Yeah i find i dont perform well, with positions offside so i always go as close to support or resistance as possible with a stop out just on the other side, i err on the side of caution which lowers my batting average a bit because i often get stopped out on fake outs, but bottom line is my R:R makes up for it by a long shot. I only had to risk 7 lousy ticks on the SPXS to prove that position right today, and i couldnt even do that, lol, even if i had my stopout at breakeven i would have survived that down move, just lousy trading, but like i said the market will teach me a lesson and i wont do it again for a while.
Now is when i shjould have moved my stoploss to the high of the day, i did it too early, i didnt let the trade prove me right before i moved my stopout up, meaning i didnt let the market go down enough that there was no possible way to take out todays highs, so move the stopout above todays highs, then let the trade run the other way, see if you can get a two day sell off.
Good example today was VNDA, I bought that thing at 13.45 today playing off the 13.40 support level. with a 6 tick stoploss and made 40 ticks on it. With that kind of R:R i can be wrong alot. I actually kind of fluked out cause it hit 13.4 but there was a reserve there which usually is what happens when im right with these things. VNDA actually looks like it could be a good buy again at 14.6 with a stop at 14.39 but i dont like what the markets doing anymore.
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Nice Trade! I was thinking you might be able to get a second day out of this, market bounced those highs 3 days in a row doubt anyone is anxious too buy any time soon.
yeah i still had 400 shares in my retirement account but its a nothing position i got out of half there too, in my other account i had 3k shares so its already cost me 1200 bucks. I always like to take half off at the first support/resistance level then keep cutting the position in half the furtehr it goes from there.
yeah i still had 400 shares in my retirement account but its a nothing position i got out of half there too, in my other account i had 3k shares so its already cost me 1200 bucks. I always like to take half off at the first support/resistance level then keep cutting the position in half the furtehr it goes from there.
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