Reverse the trade to get back loss

doubledoubledoublecup said:
Recently I was hit by the idea of "reversing the trade to get back loss" or "when you get stopped out it's the best time to reverse your trade"

Personally I had bad experience with such a trading strategy, it is not uncommon that the market would stop you out on high/low tick before going back to your original direction. But some trader seems to be able to improve daily win rate by doing it, and I read some Market wizard featured traders have used this strategy as well.
So often you use the reverse key, and is that part of your strategy? In what condition do you reverse your trade or is there any filters and rules you have for reversing your trade.
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Bad_Badness said:
It has to have a reason why. Not simply you hit a stop. The market does not care where your entry, stop, reverse reentry are. You are too small.

This is pretty simple concept but people ignore it.

If you build the strategy to accommodate it, or around it, sure, but I would recommend you work on getting a simple direction signal, entry, and exit figured out first. No need for "master" tactics, when you are still an apprentice.
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Good points;
not calling bow + arrow hits off a horse bad-bad, but the other part LOL.
Of course if its a lot of small traders- investors put in buy orders premarket+ gaps up maybe then on small orders matter LOL.
Have to factor in a personality; i never bowhunt deer off a horse ;
I use a .30-06 high powered rifle, some use .223, both good copper covered lead or solid copper, with yellow brass shell.......................................................
RGR founder had a Gatling Gun LOL:D:D
 
murray t turtle said:
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Good points;
not calling bow + arrow hits off a horse bad-bad, but the other part LOL.
Of course if its a lot of small traders- investors put in buy orders premarket+ gaps up maybe then on small orders matter LOL.
Have to factor in a personality; i never bowhunt deer off a horse ;
I use a .30-06 high powered rifle, some use .223, both good copper covered lead or solid copper, with yellow brass shell.......................................................
RGR founder had a Gatling Gun LOL:D:D
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They don't run far when you use a 30-06 lol.
 
Zwaen said:
I do think every adding, or averaging, or scaling in or out is basically a seperate 'trade'. Just like the sunk costs principle, it should be seen as seperate. And then we are back to "a crary", when correlation goes to zero, it can enhance your strategy, if it does.
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100% sure its separate, if paying commissions LOL.:D:D
Could exit it as one trade+ may pay to do that , the way a lot markets move .
 
IMO the only time to reverse is if initial trade is entered with the idea that ... if the market "doesn't do this" .... then it is not confirming scenario so reverse.

Of course it could turn out to just be hesitating and then continue to follow original scenario. If that happens I just exit, clear my head, and look for a new scenario.

Otherwise I am in and letting stop do the rest.

Happens prolly only a few times a month, if that.
 
MarkBrown said:
i have bad aim so i spray...

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LOL good snake killer ;
shot a full auto .223 in military. Semi auto shotgun, rifle, pistol easier to hit with.......................................................................
Single shot shotgun with 777 lead pellets could work well on snakes:D:D
THAT may not reverse a snake but sure ''stops'' them LOL
 
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