How do you solve this problem?

Quote from Trader273:

I'd have to respectively disagree. I think it could be suicide if he ignores the R/R ratio. People, especially new traders, are dominated by fear. Fear of not booking profits, fear of losing. If he continues to book nickels and dimes, but his losses are in dollars, he wont be around to long. This is just my opinion, but I never enter a trade that isn't at least a 1.5 ratio. Preferably 2, but that can be hard to attain.

-273
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You're exactly right, and that's why I want them to be objective and simply track their "in's and outs" - to be sure that if they are going to lose $1.00 they better be making $$'s as well. If they make dimes and lose quarters, it shows up very graphically.

Just a tool that I use....

Don
 
I can't say that wasn't a smart move. But, the speculator in me would have like to see you hold through the earnings report.
 
Quote from wareco:

I can't say that wasn't a smart move. But, the speculator in me would have like to see you hold through the earnings report.
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I agree. My rules for holding through earnings are as follows.

If I am long:

If the stock is at or near a 52 week high I sell before earnings.
If the stock is nowhere near a 52 week high I hold.

If I am short.

If the stock is near a 52 week high I hold
If the stock is nowhere near a 52 week high I cover.

There will always be time to re-enter the stock one way or the other.
 
Ok, their earnings were less than expected, but I wouldn't normally hold through earnings, just this time i made that mistake, and it worked out in my favor.
 
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