Small Stops
- Thread starter FreakofNature
- Start date
Less debates more samples, thanks 
FoN
FoN
Quote from FreakofNature:
Less debates more samples, thanks
FoN
Where a trade fails - is where it fails
Entering when price is closest to that point â either initially, or on a pullback/ retest (which obviously depends on oneâs trading style / set up) â is what risk control is all about
Bad entries (for instance chasing) will, as they must, lead to more risk (reference first sentence)
Having the patience to wait till the opportune time to pounce presents itself â is an important skill
Granted trading momo is a bit of a different animal, but â those must also have small risk â itâs a momo trade after all
Disclaimer;
My stance above is with respect to trend tradingâ¦. counter trend trading inherently carries more risk (because we never know if/ when price will pull backâ¦, or how far)
RN
Thank you for your post RN, I always enjoy reading when you post informative stuff, which is quite common.
Sometimes i get a little lost with the whole thing about trends within trends and I end up not knowing if im trend trading or counter trading.
For instance, say you got an uptrend, and you waiting for a pullback to get long, you get long, the pullback continues, you get stopped and now price is at halfway. Which is the main trend now is it still up ? If so why!
Fon
I've had the most success buying after a huge candle in the direction of the intended trade. I believe Seykota had a similar style. Schwager got a quote from him saying essentially that his buy stop was above the market where he expected the momentum to be greatest, for the lowest risk.
It's the "aha" moment, after the rest of the setup has been seen by other traders waiting to pounce.
Micro stops don't work here. It's a very creative situation.
Thank You for the kind words FON
When price is in an uptrend â I typically have either a trend line, or a channel â slanted up (most times itâs a channel)
So Iâve entered at the base of that trend line/ channel â with the target being other side of the channel
In your scenario â sounds as if price has hit the top channel (which meant it was time to shortâ¦, or wait on a pullback as you described)
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Btw if youâll start observing â youâll begin to note 50% is an important level â in channels, and in pullbacks/ retracements... in identifying momo... drawing valid trend lines/ channels
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But to answer your questionâ¦..
What is price sayingâ¦
May be it pulled back to 50% - preparing to take off
May be it pulled back to 50% - and will continue to the bottom of the channel
May be itâll start ranging
May be itâll hug the 50% and creep up
Where is price in the overall trend (bigger picture).. what time it is it.. where is the nearest horizontal S&R
Forgot to add... - what is volume saying
I would trade according to what price is/ had been telling me, and consider using the 50% line as the stop
But what I would do â is really of no consequence â is it Sir
RN
Quote from Wide Tailz:
I've had the most success buying after a huge candle in the direction of the intended trade. I believe Seykota had a similar style. Schwager got a quote from him saying essentially that his buy stop was above the market where he expected the momentum to be greatest, for the lowest risk.
It's the "aha" moment, after the rest of the setup has been seen by other traders waiting to pounce.
Micro stops don't work here. It's a very creative situation.
Yes Sir
RN
when this kind of event happens, this is when we should add to winners right ?