Thought for the day

[Cutten]

I see now that the original post was unclear. What I meant by "good exit signal" was something that tells you the market has most likely just put in a high or a low. In such a case, you then automatically have an entry signal the other way.

A lot of traders who are long will just get flat when they get a clear short signal. Because they have a long position, they just think about avoiding the loss, and aren't in the right frame of mind to then reverse and seize the profit available.

I agree that if you are just taking profits, with no view on the market subsequently, then reversing does not make sense.

 

[Atlantic]

Quote from Cutten:

Are saying that an entry signal in the opposite direction to your position is NOT a good exit signal?

you are talking about two different situations.

being in a trade and getting an exit signal (for me) doesn't always lead to a trade in the other direction. maybe a trailing stop was triggered and few moments later the market picks up the original trend.

but an entry signal in the opposite direction to a pos. is of course a good exit signal.

 

[nononsense]

Thoughts, meaning uncomplex straightforward hard excellent statements generally wind up being stringent cautions that can really preserve capital.

This is certaintly your best phrase yet, Jack.