The myth of letting your winners run

How do you do it?

  • Total voters
    29
  • Poll closed .
Tradex said:
Daytrading is fine if you are still young (not my case anymore) and have a good trading system.

Scalping is a sucker game, the mathematical odds against the trader are overwhelming!

Swing trading on the 1 to 4h charts is perfect.

Long-term trading on the daily ? No way, boring! :D
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I scalp 1 to 8 points. Yes, I suck money right out of others people’s account. You hear that sound? It is a vacuum cleaner. The traders equation put the odds in my favor.

P.S. And I am not young. I don’t reckon. 65
 
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Flowfollower said:
Is 'letting your winners (ONE WINNER?) ' run an optimal use of capital?
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Is cutting profits short the optimal move?

Only a serious backtest can give you the answer for your particular trading system.

If you are playing the range for example (shorting at resistance, buying at support) or scalping the market here and there, then yes, cutting profits short IS the optimal move.

If you are trend-trading that's another story.
 
Tradex said:
I personally never wait for an hypothetical breakout, I trade markets that are trending NOW, and exit when the trend (party) is over.
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I only trade stocks making new highs. Usually new 52 week highs. I'm not a buy and hold investor, I'm a swing trader. That said I'll hold a stock until it stops trending.
 
Tradex said:
You can swing trade on the 1h charts and spend only 10 minutes a day looking for a trading setup.
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No doubt.

I prefer the boring daily charts. I found that at the end of the year I make about the same amount of money.
 
Flowfollower said:
Is 'letting your winners (ONE WINNER?) ' run an optimal use of capital?
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If I knew for sure that my "One Winner" would be profitable it would be.

I don't know so I have several positions open at one time, risking less than 1% of my capital per position. For my purposes it is an optimal use of my capital.
 
Letting winners run is why most traders lose. They are never satisfied with what the markets hands them. They gotta get more and more. Then they find themselves going from paper loss to real loss when the pain gets unbearable. But really understanding that the market cannot go straight up or straight down. It is going to go up and down and sideways. Capitalizing on that phenomena, over and over is key. Of course, the shorter the time frame the more frequent. The more frequent .....well the more $$$. But the frequency can be too fast if trading manually. 5 min works well for me.
 
volpri said:
Letting winners run is why most traders lose. They are never satisfied with what the markets hands them. They gotta get more and more. Then they find themselves going from paper loss to real loss when the pain gets unbearable.
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The other side of the equation is cutting losers short.
You can't lose if all you have is winners that are running. Running means moving in your direction.
 
volpri said:
Letting winners run is why most traders lose.
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I am speechless.

Seriously.

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