Trade Management - Letting your winners run and cutting your losers short

E

etfarb

I don't know how many people here experience this problem but when I make a daytrade, I'm always kicking myself...

How do you approach you intraday trades in a systematic fashion so you have no regrets once you take the trade off the table?
 
Quote from etfarb:

I don't know how many people here experience this problem but when I make a daytrade, I'm always kicking myself...

How do you approach you intraday trades in a systematic fashion so you have no regrets once you take the trade off the table?
More...

By knowing that every single decision will maximize my long-term growth, and that can only be done through automation, back testing, forward testing and so forth.
 
Quote from QuantWizard:

By knowing that every single decision will maximize my long-term growth, and that can only be done through automation, back testing, forward testing and so forth.
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You only automate your trades eh?

Quant wizard,

curious do you work full time and let your system do its thing or do you watch it during the day so it doesn't freak out
 
My experience suggests that the "let winners run and cut losers short" idea is often not applicable or useful to day or short term trading. Quite often trying to graft these notions onto a winning edge simply kills the edge, or at best simply reshuffles the payoffs to create more losing trades with less frequent big winners.

If it is a matter of just holding onto winning trades, one thing that can work is to stop looking at short term charts or staring at the quote screen all day. I spend most of the day looking for or evaluating different trading ideas. This is what has worked for me.
 
Quote from MrN:

My experience suggests that the "let winners run and cut losers short" idea is often not applicable or useful to day or short term trading. Quite often trying to graft these notions onto a winning edge simply kills the edge, or at best simply reshuffles the payoffs to create more losing trades with less frequent big winners.

If it is a matter of just holding onto winning trades, one thing that can work is to stop looking at short term charts or staring at the quote screen all day. I spend most of the day looking for or evaluating different trading ideas. This is what has worked for me.
More...

MrN

Appreciate that

I'm actually trying to deduct where I went wrong today. I traded the NQ for an ORB. Worked perfect and price stalled in the 80s. I had a down day yesterday so today i covered my losses from yday and was up some, didn't wana just break even. I saw price falling and took it off. Regardless of my actions, I want to test and quantify where I went wrong for the future.

Any ideas or tips on how to deduct and do this?
 
You start like a thread a day. There are 3.3MM archived posts on this site and a search function in the upper-right.
 
You've been at this for nearly a year and yet you seem not to be any farther along than you were when you started.

If you're determined to fail, no one can stop you.
 
Quote from dbphoenix:

You've been at this for nearly a year and yet you seem not to be any farther along than you were when you started.

If you're determined to fail, no one can stop you.
More...

I'm up 20% for the year so blow a goat dbphoenix

I post to get questions answered
 
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