Stop Losses are killing me

[Turveyd]

The best strategy I use for daytrading stocks is OTO with automatic trailing stops. I start with a wide trailing stop eg .60 to $1, then tighten up the further a winner runs.

I did that successfully today daytrading bounces in SDOW UVXY TZA.

Just let it run to the SL gets hit ??

 

[KCalhoun]

Just let it run to the SL gets hit ??

Initially yes, I give it time to either stop out or move in my favor. Once a $20ish stock or etf like TZA runs up .50 or more I tighten trailing stop to .3 or tighter

 

[Turveyd]

Initially yes, I give it time to either stop out or move in my favor. Once a $20ish stock or etf like TZA runs up .50 or more I tighten trailing stop to .3 or tighter

Likely better than picking a top which is generally to early.

Improvise adapt and overcome comes to mind!

 

[bone]

I personally don't like my clients using trailing stops and I advise against it - from my experience trailing stops would take them out of a winner way too early. Was just a recurring problem for clients doing it. And it's devastating - using long term charting they would target 50 or 60 tics, get cute with a trailing stop, get stopped out for a 15 tic winner, and a couple days later it would have been 60 tics. That type of thing. Just the ebb and flow of routine market behavior would get them out of a trade way too early.

We've found it to be way more effective setting a profit target and stop-loss using modeled OTR trading range and staying with that. Getting cute can bite you square in the ass.

Just let it run to the SL gets hit ??

 

[ironchef]

For proper legit Swing Trading - you are modeling longer timeframes and you have wider profit targets and stop-loss levels due to the larger trading range. I think that it is critical for newbs trying this for the first time to use the smallest sizing that they can find. Reason being - I don't want them to be anxiety addled. They need to allow the system to work and the strategy to play out as originally planned. Once they gain some consistency and confidence - levering up is quite easy.

Consistency is the one key. Once you gain consistency, then the worm will turn for you.

OK thank you. That makes sense.

 

[Sekiyo]

You’re killing yourself.

 

[ironchef]

I think I will focus on swing trading (with smaller lots), and long term investing. I understand some people are good at day trading, but it takes lots of time to watch small time frame price action every day, which I can't easily do. For me it's easier to trade the longer term charts, that way I have time to analyze the charts and news unrushed, and also don't have to constantly watch the price action, just wait for the daily close or look at hourly charts from time to time, and in between I can do other things. And if algos and bots are a problem on short term price action then there is another advantage to longer term trading and investing.

Welcome to the club, same here.

 

[KCalhoun]

Likely better than picking a top which is generally to early.

Improvise adapt and overcome comes to mind!

I had 2 trades today in TZA, a small stop (buy 20.7 sell 20.2) and a big WIN (buy20.41 sell 21.4). Perfect 2:1 risk:reward. If only I'd traded larger size. In this winning trade I tightened trailing stop to 21.4 as it broke over 21.5 because length of pivot run was exactly same as in prior day chart. That's a pro example of pattern daytrading,

Pete, agree re t/s often get shaken out too early; that's why I start wide, then tighten; def not for newbs tho.

Worked great:

 

[ironchef]

The best strategy I use for daytrading stocks is OTO with automatic trailing stops. I start with a wide trailing stop eg .60 to $1, then tighten up the further a winner runs.

I did that successfully today daytrading bounces in SDOW UVXY TZA.

I personally don't like my clients using trailing stops and I advise against it - from my experience trailing stops would take them out of a winner way too early. Was just a recurring problem for clients doing it. And it's devastating - using long term charting they would target 50 or 60 tics, get cute with a trailing stop, get stopped out for a 15 tic winner, and a couple days later it would have been 60 tics. That type of thing. Just the ebb and flow of routine market behavior would get them out of a trade way too early.

We've found it to be way more effective setting a profit target and stop-loss using modeled OTR trading range and staying with that. Getting cute can bite you square in the ass.

I respect both you coaches and do follow your posts with great interests.

Here are some feedbacks from this amateur retail:

I tried hard stop and didn't end well. I tried trailing stop and did better, so +1 for @KCalhoun. But quite often got stopped out way too early. I tried no stop, let it ran and often they were quite disastrous.

So I gave up day and went swing with mental stops. That is way too much work. Now I am back to trying to automate my mental stops.

 

[Turveyd]

I respect both you coaches and do follow your posts with great interests.

Here are some feedbacks from this amateur retail:

I tried hard stop and didn't end well. I tried trailing stop and did better, so +1 for @KCalhoun. But quite often got stopped out way too early. I tried no stop, let it ran and often they were quite disastrous.

So I gave up day and went swing with mental stops. That is way too much work. Now I am back to trying to automate my mental stops.

Depends on what your trading, fast scarey break out plays then might be better off with a trailing SL to exit, obviously some will be fake and little profit turned to a loss, but then you'll likely hold longer your way, if you walk away.