What is Momentum trading?

[CFerret]

Quote from rcanfiel:

Hope you aren't serious. There is no free lunch. On average, the tighter your stop, the more you get stopped out.

People who sit and calculate their risk:reward before the trade, as if that had much to do with real market action are sitting in a delusional world.

Of course there is no "free lunch"... But there IS a good MM which is about letting profits run and cutting losses short.

Why would I keep the losing trade? My average stop of 2-3 handles is usually way enough to find out if I'm right or not even in limit down days in NQ, not even speaking of less volatile environment...

 

[CFerret]

Quote from tradingbug:

IN terms of CF and Bighog. When one trades BO out of patterns, one doesnt know before hand how far the move is going to go(at least in my experience). Its best to understand price levels and know where traders like to take their profits.

I think a combination of exitig some on the Price level and then letting the rest ride for the trend is a good way to handle this problem.

Thanks for explaining things bug.

Yes indeed, it's bighog who taught me to cut losses very short and run good momentum winners until the likely mass profit taking point or momentum fading away. And now I can definetely say he is dead right about this kind of MM.