i exited a long Dec Cocoa position yesterday at 3148. Today Cocoa went to 3227
Always look for the 62% fib. I'm Targeting a W but will be on watch here.
How do you hold winners longer?
- Thread starter pk3r1234
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Always look for the 62% fib. I'm Targeting a W but will be on watch here.
Man, 98% of the posts have no bearing on OP's question. If I'm not mistaken, he wants to know how he can nail the exact top and the bottom. Here's my suggestion. Approach the exit as you would an entry. If your entry is impeccable, so too can your exit. If you know how to time your entry, so too can you time your exit. If you know it was a good entry, so too will you know it was a good exit.
Here's a good analogy of what you are suggesting.
If you can buy the winning lottery ticket, you will make millions.
Bottomline, that's a huge "if" you are suggesting.
It's more just me being unsatisfied with my gain % I guess. I make good plays, I just wish I had the patience to hold them for like a swing or something. It feels like if I don't sell when my strategy suggests I'll end up losing profit. It's more annoying seeing a new trader make these massive 50+% gains but I can't, even though I've been trading over a year now. That's actually a good suggestion though, and I do that but I can really only do it when I'm short. I'll cover my short for profit and buy using the opposite of my shorting strategy when I know it's not going to go my way. I try to make my approach as systematic as possible.
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It has nothing to do with luck. I grant that it's difficult, but it ain't insurmountable. If you know when to get in the trade (most beginner/intermediate traders do not), you can apply the same entry concept to the exit.
First, study price action. Price do not move in random. There's RHYTHM and pattern, and price do repeat itself--time and again. Pay close attention to support/resistance and trendlines. Next, consider the MOMENTUM. Is it strong or weak? If strong, is it enough to penetrate through the resistance or support? If weak, will price reverse? Finally, HOW LONG did it take to break above or below the S/R? You can apply the same concepts once you're in the trade. I won't get into the detail...this is for you to find out for yourself. Good luck!
I did not use the analogy for luck but for rarity.
Anyone who buys exacts bottoms and exits exact tops, has shitty accuracy, fact. Otherwise, he would make Gates, Buffet, Slim, Soros, look like peasants.
The exit of a profitable trade is the hardest part of trading. There's a rule that you should cut your losses and run your profits. This should really read, 'Know when to cut your losses and how far to let your profits run'.
On the profit side, there are a number of ways to exit. You could:
a) have a target
b) trail a stop
c) gut feel
d) a combination
Also, you can re enter the trade. I'm somewhat in favour of exiting at a predetermined target area, at which point my mind is clear. I then can re-evaluate the situation and then re enter the trade as a new trade with new size, stops and targets if i think the trade has merit.
On the profit side, there are a number of ways to exit. You could:
a) have a target
b) trail a stop
c) gut feel
d) a combination
Also, you can re enter the trade. I'm somewhat in favour of exiting at a predetermined target area, at which point my mind is clear. I then can re-evaluate the situation and then re enter the trade as a new trade with new size, stops and targets if i think the trade has merit.