Riding your winners and number of positions

[candletrader]

Originally posted by Don Bright
There is no exit time, or exit dollar amount. You get in when the market is screaming at you "buy me now" or "sell me now'...and get out when things stop or start to reverse. Remember, you can make 20 cents 5 times or pray for 1 dollar one time.

We try very hard to not think about the profit or loss, just good entries and exits.

(To all: Don't bother saying something like "sure, you want more commissions" or that I am trying to encourage more trading...this is simply how it is done)..

Dearest Brother Don,

On your above post, I am in wholehearted agreement. You have correctly highlighted the methodology of trading in any time framework i.e. to close a position when the rationale for trade entry is mitigated.

With the sincerity and warmth of feelings that can only prevail amongst the Trading Brethren,
Candle

 

[GeeTO69]

Don't ya just luv candle's postscript...

KILL EM ALL!....AND GOD BLESS AMERICA.

Does anyone else find the contradiction in this?

 

[candletrader]

Originally posted by GeeTO69
Don't ya just luv candle's postscript...

KILL EM ALL!....AND GOD BLESS AMERICA.

Does anyone else find the contradiction in this?

Dear Brother GeeTO69,

You have missed out on the key point that America is the bestest country in the world and is the home of freedom and liberty... and all good countries are currently on America's side in a worldwide war against the Evil Doing Fanatics... and we're gonna win that war! Make no mistake about it!!! Yeeehaaaa! God Bless America!!! But, of course, we should minimise 'collateral' damage!!!

With sincere love for all fellow freedom-lovers,
Candle

 

[ddefina]

Check this article out about what the U.K. thinks of the U.S.'s Military build up. We never hear this point of view from US news sources? We have a bad @## military.

http://www.observer.co.uk/worldview/story/0,11581,648112,00.html

 

[GeeTO69]

But, of course, we should minimise 'collateral' damage!!!


Oh, well certainly, we must keep the killing to acceptable levels. I can live with that.

 

[H2O]

I've found the best way to boost my profits is to set a target and then exit 2/3 of your position at this target.
Keep 1/3 of your position until you decide to exit (sell signal or time based)
At your stop you exit all your postions off course.

Try it and boost up your profits.

Succes

 

[Optrader]

"'The war on terrorism,' says Professor Paul Rogers, of Bradford University's Department of Peace Studies, 'is simply a euphemism for extending US control in the world, whether it is by projecting force through its carriers or building new military bases in central Asia.'"

Yeah, right, as if we'd all expect some prof in a "Department of Peace Studies" at any university to state otherwise. Geez........

Other than that, I like the 1/3-2/3 concept.

 

[gwb-trading]

The key thing is to keep a winner from turning into a
loser. One strategy is to sell when a winner retraces
a set amount from a water mark profit gain level.
For example, if the profit on the trade reaches $.50;
then if the price retraces to the point of a $.35 profit
then sell in order to maintain your gains. Multiple
levels of this strategy can be set (e.g. if the profit
reaches $1.00 then sell at $.85 retracement etc.).

A sliding scale based on retracement to a moving
average or a moving stop loss that increments in
level can also be designed.

The important things are to:
- stop winners from turning into losers.
- keep the average size of a win greater than
the loss in terms of dollars.
- keep the percentage of wins over 50% (preferably
over 66%)

- Greg

 

[Babak]

here´s a cool idea that I learned from Chris at realitytrader.com when he was active on realmoney.com :

use volume spikes to exit. A spike being defined as a multiple (3 or four times) of the usual volume. This strategy allows you to get out when everyone is trying to get in. The probability is on your side as well as liquidity.

a good example was HAND on Monday Feb 11th 2002 at 12pm (using 5 min chart) Notice that this is usually a quiet time of the day so it was quite significant.

It did not turn out to be the high of the day but who cares? An entrance on the break of the ascending triangle in the morning ($4.86ish) with stop loss was at $4.60ish and an exit on the volume blowoff at $5.50ish was nice! [A 2.6XR trade]

 

[easyrider]

Don

"You get in when the market is screaming at you "buy me now" or "sell me now'...and get out when things stop or start to reverse. "

While I truly enjoy your posts and insights I must respectfully disagree. It has been my experience that the market very, very seldom screams at you what it is going to do. It usually whispers and winks. I have heard it raise its voice a time or two but I have yet to hear it scream.