i trade 1,2, and 5 minute.....10 cent stop - upon 5-7 cent profit, i move stop to breakeven + 2 cents to cover my commish. i then usually use a more discretionary approach to stops. typically after 15 cents profit, i will exit if more than a 50% retracement occurs. normally, i'll wait for divergence from my macd to create a stop line that, if broken with volume, i will exit. that stop line will continue to hold even if the macds rollover. this allows me to catch a final wave if its there. i will usually scalp my exit on this last wave up (unless my indicators indicate a new setup); that is, as soon as momentum slows down i'm out.
POLL: What kind of stops do you like?
- Thread starter candletrader
- Start date
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Use smaller stops ,preplanned, on a daytrade than a swingtrade;
I am
careful not to overtrade,reguardless of trade.
Mostly moving average stops;
enter close to a moving average or better yet moving averages.
Some [not all] whipsaws can be avoided like trading less during sideways markets,like lately.
Move in when stock for sure is moving my way;
some stocks have a pattern of less whipsaws tham others.
Will switch slowly to a tighter [smaller]moving average as days pass by; a whipsaw can occasionaly be a blessing in disguise-trend is about to end, or go in a sideways trend.
Love,
Murray
Quote from opw:
Small? Larger?
Compared to what? Target, price, length, time?
http://www.elitetrader.com/vb/showthread.php?postid=280872#post280872
Sorry missed that one. To me, what is the use of using wide stops, probably from another higher timeframe? In other words, why enter on a smaller timeframe, if you are not going to profit from it.
Although I enter based on the break of the daily hi/lo (with a few other distinctions) I base my stop on the intraday pattern around that break.
To me, that is the whole 'edge' of daytrading... You can keep your losses small.