how shall I close my orders?
- Thread starter cf0532
- Start date
Ummmmmm
Baron
ET Founder
It sounds like you only have half of a strategy, meaning that you have a model for entries but you don't really have a model for exits. You neeed to come up with some rules for yourself that will give you a framework for getting out of both winning and losing trades in a predictable manner.
For me, there is only one way to exit trades and that is based on my profit goal. Or when the profit of a position gets into my top ten most profitable trades for the last 30 years, I dont ask what is going on or what does the chart say - I just sell it and celebrate.
This model has worked great for me over the years and at the end of the year/decade there is more money in my account than the year before - which is my goal = to make money to support my lifestyle and family. I don't believe in stop loss orders to lock in a loss so you have to stay away from margin and make multiples of your risk. Good Luck....
thank you for your sincere advice and I believe what you said is what you did;
I think it is very well for you advice "close order when the profit of a position gets into my top ten most profitable trades for the last 30 years"; and I also want to know what is your common profit goal? and whether you mean never close the order even if it lose some money?
I see you have traded more than 30 years and I have trade about 10 years; and I guess you can win money from the market steady; so I want to know how many years you have spent before you can earn money steady? I just can earn a little money and sometimes lose, and most time I feel scared about the future, shall I get some advice about this?
In my own humble opinion, each person has to find a style that matches the level of stress they need to reach their optimal performance. It is normal to be anxious about the future which the outcome is unknown. When traders are scared of their positions then they are either too big or they're risking money they don't have. In simplistic terms, be clear of your goal which is to make money. It's not about winning more than you lose and feeling good about that, it's the bottom line which is did I make enough money to live the lifestyle I want to live.
If you're the type of person who always loses in a casino and at private poker games, then your chances of money management relative to probabilities being successful are slim in the financial markets. Don't quit your day job!
For me, I need to see four times profit that I'm risking. It's not to say that my mark to market is always positive it's a question of do you let the market take you out when things go against you. If your research is sound, then you dollar average down and reduce your cost basis while you wait for the market to come to the same conclusions you have. That means sometimes within hours and sometimes in years. Can you wait 1 to 2 years to take profits on a position?
If I have to wait one year to take profits, then it has to be one of my top 10 trades and it also means a lot of dollar averaging down so it's going to be a big position. I never use margin.
I'm sure there are many successful traders in these forums that have unique approaches that you should incorporate in your thinking. Hope they are willing to share a few hints. Good luck.
If you're the type of person who always loses in a casino and at private poker games, then your chances of money management relative to probabilities being successful are slim in the financial markets. Don't quit your day job!
For me, I need to see four times profit that I'm risking. It's not to say that my mark to market is always positive it's a question of do you let the market take you out when things go against you. If your research is sound, then you dollar average down and reduce your cost basis while you wait for the market to come to the same conclusions you have. That means sometimes within hours and sometimes in years. Can you wait 1 to 2 years to take profits on a position?
If I have to wait one year to take profits, then it has to be one of my top 10 trades and it also means a lot of dollar averaging down so it's going to be a big position. I never use margin.
I'm sure there are many successful traders in these forums that have unique approaches that you should incorporate in your thinking. Hope they are willing to share a few hints. Good luck.
Thank you very much!
i am sorry but this sounds as a absolute baloney
market does not care about trader's expectations or goals
exit (same as the entry) therefore should based on market situation assessed through the prism of the method, not on what profit was expected
i do not believe one would be able to trade 30-day based on profit expectations, not even talking about 30 years