After going 15 for 25 and still managed to lose the game (something I didn't imagine possible), I have one question which is probably the hardest of all in day trading:
When do I take the scalp and when do I hold on for the ride?
Obviously, there is no easy answer to this, or we will all be rich, I would like to hear how people exit their positions, more or less the "rule of thumb" . . .
Stops are easy enough, so is taking a small loss, the toughest part is "letting winners run". I know it eventually comes down to experience and gut feeling, but any tips will be helpful.
Here is mine from aggressive to passive (I am using long side as the example):
1) Direct Plus into the BID, I want out immediately, market reversed, index reversed, news came out, large offer showed up . . . I want out, I don't want to risk any slippage.
2) Sell market or offer out limit, like when something ripped half a point on weak volume . . . I want out with a decent price, no rush, but I want out.
3) Stop at the BID, lean on the BID, he hits the BID at all, I am out, usually used on a large BID toward what I believe to be the end of the move.
4) Stop 1 cent below the BID, many times, when the market/index rips, I use this against a decent sized BID, if the stock does what I believe it should do, it should not trade below that BID. I use this a lot upon entry's . . . Versus 3), this is a lot less vulnerable to specialist games like selling 100 shares into the BID and triggers your stop, but many many times if the BID does get whacked you will take heavy slippage, hence the risk.
5) Below the low of previous 5 minute candle, when I want to swing something but don't want to give too much room.
6) Below the 20 SMA (mid band on the BB), when I really want to swing something but the stock seems to be consolidating a little so I want to give it a little more room.
Paring out: I do this when the stock trades far above the stop of 5) and 6), say half a point above my chart based stop, or any time when I feel uncomfortable. It is typically done through 1, 2, 3 or 4 with a portion of the shares.
What I look for: Size BID preferably stepping up, size prints taking out at the offer. Volume, volume, volume . . .
***All of my work done on 5 minute charts and TOS***
Now, the question is when do I use a tape based stop and when do I use a chart based stop? I remember several times a very good trader would say "Hold the SOX stocks all day", and sure enough, it trends, consolidates and closes near its high.
Under what circumstances would you consider holding on to something for a swing of more than 1 point? How do you determine the strength of a trend? If you have exit strategies please post them here!
When do I take the scalp and when do I hold on for the ride?
Obviously, there is no easy answer to this, or we will all be rich, I would like to hear how people exit their positions, more or less the "rule of thumb" . . .
Stops are easy enough, so is taking a small loss, the toughest part is "letting winners run". I know it eventually comes down to experience and gut feeling, but any tips will be helpful.
Here is mine from aggressive to passive (I am using long side as the example):
1) Direct Plus into the BID, I want out immediately, market reversed, index reversed, news came out, large offer showed up . . . I want out, I don't want to risk any slippage.
2) Sell market or offer out limit, like when something ripped half a point on weak volume . . . I want out with a decent price, no rush, but I want out.
3) Stop at the BID, lean on the BID, he hits the BID at all, I am out, usually used on a large BID toward what I believe to be the end of the move.
4) Stop 1 cent below the BID, many times, when the market/index rips, I use this against a decent sized BID, if the stock does what I believe it should do, it should not trade below that BID. I use this a lot upon entry's . . . Versus 3), this is a lot less vulnerable to specialist games like selling 100 shares into the BID and triggers your stop, but many many times if the BID does get whacked you will take heavy slippage, hence the risk.
5) Below the low of previous 5 minute candle, when I want to swing something but don't want to give too much room.
6) Below the 20 SMA (mid band on the BB), when I really want to swing something but the stock seems to be consolidating a little so I want to give it a little more room.
Paring out: I do this when the stock trades far above the stop of 5) and 6), say half a point above my chart based stop, or any time when I feel uncomfortable. It is typically done through 1, 2, 3 or 4 with a portion of the shares.
What I look for: Size BID preferably stepping up, size prints taking out at the offer. Volume, volume, volume . . .
***All of my work done on 5 minute charts and TOS***
Now, the question is when do I use a tape based stop and when do I use a chart based stop? I remember several times a very good trader would say "Hold the SOX stocks all day", and sure enough, it trends, consolidates and closes near its high.
Under what circumstances would you consider holding on to something for a swing of more than 1 point? How do you determine the strength of a trend? If you have exit strategies please post them here!
... i.e. if you are totally convinced that the trend is so strong that eating into your profit earlier will be worth it later). Any profit above that is a bonus, and will lead to a greater than a 1:1 risk:reward ratio. 
.....on VRSN it worked perfectly and kept me in the trend until I got my blowoff I was waiting for and I was able to cover at 34 for one of my biggest R-gains in months....