HELP! my winning days are killing me!

Rs8.5 · Apr 22, 2003

Trailing stops are good. But not all traders have the ability to use them. And very few get to use them on nasdaq issues.

Mental trailing stops are a very worthwhile approach.

To save myself some typing, I will quote myself (from my previous incarnation when I was the less evolved "Rs7":

Quote from rs7:

Have a reason to make every trade. Be able to verbalize that reason. As importantly, have a reason to exit a trade. You hear "cut your loses and let your winners run"....That is so true. I so often have seen traders get out of good positions because they have achieved their "target price" "target of profit"....I say this is bad thinking. If the trade REMAINS a trade you would put ON at the time you "achieve target", why in the world would you take it off? To me, it is as important to have a reason to get out of a trade as to get in. Anyone can say to themselves they have a reason to exit a losing trade..."cut your losses"..Why then is it so hard for so many to have a real reason to get our of a winner?
It should be, and is, easy. It just takes DISCIPLINE. If you give back X% of your profit; if the market changes, if the group starts to get weak, whatever. You have to have your disciplines and stick to them. Make your own rules, and stay consistent to them.

Now I realize that what is "bad thinking" to me, is not at all "bad thinking" for those who trade with "targets". I know many great traders who use targets. We each have our own styles, and our own beliefs. So this is just me. Certainly whatever you are comfortable with is right for you. There is no definitive answer to anything about trading. If there were, we would not need to think. We would buy a trading program, fund our accounts, turn the thing on, and let the computer trade. But it doesn't work that way.

For the post and thread I quote myself from, written in the ancient days of July of last year, for those interested, the whole shebang can be seen at:

http://elitetrader.com/vb/showthread.php?s=&postid=84775&highlight=reason+to+exit+a+trade#post84775

Peace,

Rs8.5

Phantom Trader · Apr 22, 2003

How come everyone in this thread is named Pete?

P.T.

Ebo · Apr 22, 2003

Quote from LongShot:

i don't have this problem because i don't care. i don't care if i make $500 or $5000 each day. i don't really care. it's all the same to me. i truly don't give one rat's a$$. consequently i stay in the trade till i get out, it's as simple as that. and man that does feel great.

Wow you are bitter!
I guess you lost money.

ClownShoes · Apr 22, 2003

worry comes from no plan

got a trailing stop, great. got a price target, great. got many systems working on different philosophies, great. making it up as you go along, shittty. unless that works for you, then what the fuck am i talking about

gdtrader · Apr 22, 2003

I think the trailing stop is the best idea. If you want to make things simpler Try selling 50-75% of your position when you normally get out. And try playing with the other 25-50% of your position if you feel that there is still potenial profit in your trade. See how that works for you.

Banjo · Apr 22, 2003

Quote from daytraderpete:

Just wondering if anyone else has gone through what I am going through right now, and if you did, how did you get past this stage.

I have excellent discipline in taking my losses, and when I have a bad day it is maybe a couple hundred bucks. MY problem
is that when I am having a good day, I am making about $300 - $400 whenI should be holding my trades longer (obvious trend days) and should make around $1,000.

My question is: What techniques do you use when you are right to max the trades potential?!

thanks ,
Pete

Banjo · Apr 22, 2003

Use two different time frames, enter on the shorter and use the longer to keep you in the trade if it merits staying in. Use the same parameters for both,i.e,. if you enter on the 5min chart watch the same parameter setup on the 10min. It can keep you in thru the wiggles and make trends more obvious. Test it to see if it would have worked for you. If you are a scalper using brackets etc. set the exit bracket further away if it looks to be trending.

gotta_trade · Apr 22, 2003

I always scale out of my trades.

(Unless I get a windfall profit right away, then I close the position all at once)

howardy2k · Apr 22, 2003

daytradepete, u need to detach from the trade. If u think u sold too soon, buy it back. Been a big difference for me for the last 2 years. would that turn u into a scalper????

shyhh · Apr 23, 2003

Quote from daytraderpete:

Just wondering if anyone else has gone through what I am going through right now, and if you did, how did you get past this stage.

I have excellent discipline in taking my losses, and when I have a bad day it is maybe a couple hundred bucks. MY problem
is that when I am having a good day, I am making about $300 - $400 whenI should be holding my trades longer (obvious trend days) and should make around $1,000.

My question is: What techniques do you use when you are right to max the trades potential?!

thanks ,
Pete

There is usually a compromise. If you allow yourself to hold a trade longer, you might ended up having less winning trades. Its really up to yourself. But i personnally feel that taking smaller profit with a higher winning ratio tends to produce lower drawdown, i feel more comfortable with it