The myth of letting your winners run

How do you do it?

  • Total voters
    29
  • Poll closed .
volpri said:
Bingo AGAIN!
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writers-in-pub.jpg
 
deaddog said:
The question is how long do you let them run?

My strategy is to let them run until they don't. A break of the trendline signals time to sell.
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Depends;
today is one of the many good times on UPRO exits.
IF one owns a daytrading company[+ i dont], not long @ all with your workers/labor.............................................................................
 
deaddog said:
Depends on where you got in.
If you went long at the 200 ma you might want to let your winner run. :)
(I don't have a position)
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I did+ was planning on collecting dividends on upro/like last DEC/let the profits ride.
BUT i like getting paid every now + then/so i did exit on upro today.EVEN today/it still went up more than i thought it would....................................................................
200 dma is a great dma/but i got in UPRO,later than 200dma.Good moves/maybe not 100% like 2019
 
AAPLs volatility is on par with the QQQ most of the time, it is not very often when its range is expanding- prime time for a swing. You can find more volatility from small cap stocks.

Typically swing traders position size is 5-25% of cap and hold a handful of positions when the market conditions are good.

What helps me in letting profits run is to take a partial profit, than I move the stop just below were I took the profit with a bit of wiggle room, this gives me a free ride to make more.

When you leave a winning trade that is still looking good you have to keep in mind your'e next series of trades may be losers & you may be watching the trade you exited soar - the partial profit will remedy this scenario to some degree.

I really dig this clip - there is some real wisdom in it even though he is drunk.

 
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Flowfollower said:
It's been 6 months and my views haven't changed. I still view trading as a mathematical pursuit.

What is not discussed is that there is a cost of "letting your winners run". That cost is time. It is the enemy of frequency. The longer one is in a trade, the fewer trades that trader can take.

I know the mantra "the money is made by holding for the big swing". But my tiny mind just cannot see this as anything but a hopeful concept.

As an example:

Trader 1 buys AAPL at $120. Stop Loss at $115. Exits at $130. Trader 2 comes along and enters at $130 also with a $5 stop loss.

Trader 1 can now recycle their capital into another setup.

Trader 2 has entered where Trader 1 never would have entered. So why should Trader 1 have held at the point in hope of continuation?

Therefore anybody who believes in "letting your winners" run must also believe that entry is unimportant. Agreed?


Is there anybody out there who has given this some thought?

Thanks
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How do you know the stock will stop at $130 and not go higher? And why does trader 2 enter later? If both enter at the same time and trader 1 exits earlier then trader 2 will profit much more.
 
For me, letting winners run is a myth. I've left so much dough on the table you'd think I was selling puts in $PZZA

Psychologically, leaving money on the table makes me feel worse than realizing a loss.
 
.sigma said:
For me, letting winners run is a myth. I've left so much dough on the table you'd think I was selling puts in $PZZA

Psychologically, leaving money on the table makes me feel worse than realizing a loss.
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How do you fell when you sell for a quick gain and watch your position double?
 
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