"never let profitable positions turn into losing ones"

[Gordon Gekko]

Quote from Samson77:

Gordon Gekko even though you've had the arrogance to insult me in similar posts that I have made on different issues that we face as traders. This issue that you are dealing with, I have solved and I will not stoop to flaming or insulting you but I will be a man about it and tell you how you can overcome this trading problem.

The answer is simple.

Once you reach the equal profit potential in the trade as your stop you have 2 choices.

1. Take half off and move stop to breakeven plus a tick and let the balance run for a home run.

or

2. Move stop to break even plus a tick and let the entire trade run till target or exit signal.

lol thanks for the reply. when did i ever insult you? if i did, i was probably not completely serious. i am usually not a total ass unless provoked or religion is discussed. lol

 

[Mecro]

Quote from stock777:

So if you think the stock is going up 1 point, and its up 10 cents, you aren't allowed to give back the 10 cents? How much of the 10 cents do you have to preserve? 9 cents, 8 , 7, 6, SELL!!!!!!!

And then it goes up the point without you.


Sadly, it's a rule that really makes no sense and can't be implemented without screwing up the method you use.

You can always re-enter if you are right.

Let's say you are wrong about the point move up but are up 10 cents. Stock goes back down, you bail take 5 cents profit and just watch to see if it's a shake out. What if the stock is actually going down one point and you see that now? Take it short.

But if you stick in it as it goes down, just how far will you hold it? Down 5-10 cents? You get out and it's not until you hit that sell order will you see that you actually should have been short.