The art of collecting profits

Before you decided to commit capital you must’ve worked out your edge and expectancy. Play the same R:R/targets and increase size as your account grows.
You can read market structure/ supply demand etc but if you’re struggling with exits stick to the targets that gave you the confidence to take a seat at the table. Build the account and add size.
 
trader1974 said:
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?
More...

If you know the output is subjective although I think you're talking about "profit targets / stop loss protection"...

Just stick with your trade strategy that you backtested and simulated traded.

For example, if your tests show that your profits via your trade strategy are 5 points and your losses are 2 points but overall its a a profitable strategy...

Its a waste of time to worry about a trade that continues to 10 points or 30 points after you've already exited at the goal of the trade...+5 points profit.
  • The real question is if you're reaching your profit target and decide not to take that profit...why the hell would you allow it to retrace and take you out of the trade at a loss ?
Seriously, use profitable trail stops if you reach your profit target but afraid it will continue into a before profit that you did not realize such will happen. Simply, never let a profitable trade that has reached its profit target to then retrace and take you out for a loss.

Traders that do that should not be trading.

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

And that's my final answer. :D

More...
Tradex,

Do you recommend exiting at these moving averages even if reward vs risk is less than 1?

I see the ideal places to exit, just my RR be small, less than 1.
 
trader1974 said:
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?
More...
Hello trader1974,

Note: I am currently a non profitable day trader. I am inconsistent in making money even though last week , I had a $1000 week. So please read below as my experience only.

You enter a trade and you point your stop loss (risk) somewhere accordingly.

The question now becomes when or what time to exit the trade.

The question is something that challenges me daily and often. I have tried stop trailing, 1RR, 2RR, and even 3RR. I even tried exiting at the local logical (what make sense place to exit) regardless of the RR in place.

For my mental and comfortability day to day, I am exiting at logical targets (i.e., dynamic support and resistance, I see in real time with my own eyes). If I can not watch the chart after entering, I simply use a 1RR bracket order and let the trade go.

Sometimes this gives me a profit of $50, or even $100, or even $300, with a risk higher than that. I just take it and try not worry about the risk it took to take that trade, or how much the trade went after I exit. Yes, this goes against the whole "keep your risk lower than reward" speech. But oh well, these people are not with you and I daily. They just talking in general and messing around. Also, I still track the 1RR and 2RR or statistical purposes to measure over time.

I will also add that, I like to take alot of trades and measure outcome based on sample size, so that's why we have to keep on testing and measuring ourselves day to day or when doing some back testing when time permits
 
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trader1974 said:
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 a moving average?
Exit when you see a high volume?
What you think?
More...
%%
Moving averages may or may not work. I own some tulip time stainless steel flatware; most likely will not work there; not designed for resale/LOL. I like them myself.
So you are really asking sell too soon or too late?? Yes, both
A small profit is worth risking for more 99%+/ of the time/good trend; unless daytrading.
Could do partial profits; but with low or no commissions/ could find something better..
Inverse etfs can easy run a bigger trend than we figured; but rather than ''tear hair'' ;may get back in again.
I also may stop trading something rather than ';'tear hair''
 
SimpleMeLike said:
Do you recommend exiting at these moving averages even if reward vs risk is less than 1?
More...

If your moving average exit gives you less than 1 risk/reward ratio then close your position and watch what happens next: most of the time the market will hit your stop ... :cool:
 
Tradex said:
If your moving average exit gives you less than 1 risk/reward ratio then close your position and watch what happens next: most of the time the market will hit your stop ... :cool:
More...
Yes I agree with you, just exit at the moving average and be happy money was made.
 
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