The art of collecting profits

[trader1974]

The entry into a trade is usually quite defined with a stop at a specific point.
However the output is more subjective. Sometimes you have a profit and if you don't close the trade it becomes a loss.
Sometimes you close the trade and you pull your hair out because the price ran much more than you thought.
So what rule to apply?
Lengthen the trade using heiken ashi?
Lengthen the trade using a moving average?
Exit when you see a high volume?
What you think?

 

[BeautifulStranger]

The entry into a trade is usually quite defined with a stop at a specific point.
However the output is more subjective. Sometimes you have a profit and if you don't close the trade it becomes a loss.
Sometimes you close the trade and you pull your hair out because the price ran much more than you thought.
So what rule to apply?
Lengthen the trade using heiken ashi?
Lengthen the trade using a moving average?
Exit when you see a high volume?
What you think?

For day trading, use partial exits based on SR levels, %ADR, a WRB, a number of standard deviations off VWAP, or a moving average. There are certainly other approaches, but these may be a good start for some. There is an old trading adage that goes along the lines of “Enter when it is quiet; exit when it is loud”.

 

[trader1974]

If I go in favor of the general trend I try to lengthen the trade more.
If I go the reverse of the general trend I prefer to close the trades fast.

 

[Tradex]

Lengthen the trade using a moving average?

The answer is B: Use a moving average to exit a winning position.

And that's my final answer.

 

[Turveyd]

Well get the entries down first, forget, repeat for about 10years then it shouldn't take any longer than another 10years to get the exit's to a 70% efficiency.

Only start trading younger than 30 with no health issues or odds are you'll die before you crack it.

Might of reached the working on entries point, nahhhhhhh few more years.

 

[trader1974]

 

[SunTrader]

There are very few good reasons why to use a price or time target:-

a) intraday, if you want to avoid news release times or EOD chaos.
b) beyond current day, something personal happening away from trading like perhaps vacation or doctor's appointment etc.
c) either intraday or beyond if you think capital is better put to use in a different market/symbol if X doesn't happen by Y.

Friday's eMini Russell with 1st 5 minutes and 1st 30 minutes average price red horizontals (1st minute not shown was below @ 1141.70) clearly signaling expanding levels upward and that uptrend likely is expected for the rest of trading day. Green horizontals drawn from trend bars also clearly show price respecting them. No calculating no fuzzy squiggly lines. Just PA.

 

[trader1974]

Check that the price respects levels and upward expansion force.
Certainly a good way to do it
Pure PA.

 

[trader1974]

And how do you know that you would not have to exit after the break of the support?

 

[Bad_Badness]

It also depends on what you are trading. Some are much more volatile. Also remember you can put on another trade later. That being said, don't squander the better trade setups with a rigid exit since there is a limited number in any day.

You are trying to balance probability and profitability.