Managing winners

Traderjohnsblog said:
In my opinion that would require you be able to say this. If this (fundamental thing) occurs I will exit. I dont know what fundamental thing could occur that would be an exit trigger. Short of the company declaring bankruptcy if you are an equities trader.
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Good point.
NOT a stock tip; its an example [ticker= CHK]Crook CEO made a deal with the devil, IBD article noted.[ Later,killed himself some time ago.] Put it simple, Carl Ichan uses fundamentals well, much + he cut a loss on CHK some time ago. Could GOOG it for more info:caution::cool:
 
It seems almost all of this is relative. Are you daytrading or swing trading? Are you buying or shorting stock, futures, options,etc? Size of position and amount of capital being tied up definitely comes into play. And as far as “letting your profits run” that’s a pretty gray area as well. I mean do you double your money in 2 hours and just hope it keeps running or do you cash out FAST! Are you long a 10 lot of cheap call for the next 3 months and it looks like the underlying has more room to run so you just ride it out and see what happens. Every way you look at this is relative. Taking profits and managing losers at different levels and percentages is a big part of actively trading and being a trader which is definitely not a perfect, black and white science.
 
contango321 said:
It seems almost all of this is relative. Are you daytrading or swing trading? Are you buying or shorting stock, futures, options,etc? Size of position and amount of capital being tied up definitely comes into play. And as far as “letting your profits run” that’s a pretty gray area as well. I mean do you double your money in 2 hours and just hope it keeps running or do you cash out FAST! Are you long a 10 lot of cheap call for the next 3 months and it looks like the underlying has more room to run so you just ride it out and see what happens. Every way you look at this is relative. Taking profits and managing losers at different levels and percentages is a big part of actively trading and being a trader which is definitely not a perfect, black and white science.
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And even when you get a perfect black + white candlechart, its more than science.:D:cool:Red apples are popular/popular sellers , prices can come down in SEP, usually; but green granny Smith apples tend do well most anytime.....
 
Visaria said:
This is somewhat incorrect in my opinion. You basically want to make a lot of money when you are right and lose little when wrong. It might be that you just have bigger positions on when right and small positions when wrong rather than hoping a position goes further in your direction.
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Excellent points but the devil is in the details. The challenge is in selecting a trade, how do you pre-determine which one will be sure winner and put a lot of money into that?
 
ironchef said:
Excellent points but the devil is in the details. The challenge is in selecting a trade, how do you pre-determine which one will be sure winner and put a lot of money into that?
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You can sure look/study a lot of things ironchief; me 2.
BUT due to a practical point of =cant predict much[one/two trades would not be a prediction,LOL]. A good general rule is younger any are , the more draWdowns one can stand.

A crude but good way to position size is= what if you lost all that position??.[Hint when they jumped out window-loo large a position]Stock Trader's Almanac, book by Hirsch + IBD ,weekly now newspaper can help, no matter what time frame.....:cool::cool:
 
Visaria said:
Nothing is for sure in the trading game.....
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In that case I will be forced to keep all my position size the same since I cannot predetermine which is a sure winner and which is not. Then logically I have to let winners run and risk letting winners become losers.

Not sure if I make sense.
 
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