What is your typical timeline to exit a position?

[NoDoji]

Quote from kut2k2:

This is the main problem with discretionary trading: too many opportunities to second-guess yourself. Mechanical trading has predetermined exit(s) and IF you have a properly backtested and profitable system, it's just insane not to follow all the entry and exit signals.

Exactly!

Having been guilty of letting losers run and cutting winners short and having later worked with some traders who did the same thing, I understand the mindset that causes it.

There are the three situations I've observed (and also been guilty of):

- The trade immediately runs against you and you hold and hope it will at least get back to even. If it does, you scratch the trade (cutting any chance of a profit) and if it doesn't you take the full loss (or worse if you move stops further away or average down).

- The trade stalls and consolidates around your entry price and you finally scratch the trade because it isn't moving and you get nervous. This also eliminates the chance of a profitable trade.

- The trade runs in your favor and you immediately move your stop to break even to prevent the chance of a loss, or you take a small profit at the first sign of price stalling or pulling back. This results in a break even trade or a small profit.

The psychology behind these behaviors is the desire to relieve the discomfort that comes from the environment of risk and uncertainty. By preventing the chance of a loss or by scalping a tiny profit to get the pleasure of a reward, you feel "safe" from the market "taking away" from you.

It's often said that we attract what we fear. By fearing any loss in the market, we behave in ways that prevent gains.

The net outcome is that the only thing we allow to run is the losers.

:eek:

 

[xelite777]

Quote from NoDoji:

The net outcome is that the only thing we allow to run is the losers.

:eek:

It's always a pleasure to read that kind of comments

 

[Hooligan69]

Five instances of whichever TF I'm trading.

At that point I'm looking to cut 2/3s of the trade profit or loss, and the final third gets a stop at break even.

 

[xelite777]

If you're a trend follower, you're supposed to let winnings run. There is no time limit, just ride the trend to its end. If you're RTM trading, you're supposed to have a profit target. Again, there is no time limit.

What's with the obsession with time limits?

Not quite Kut2k2, there are a few exit strategies based purely on time limit, for example you buy here and you sell exactly 4 days later, 4 days being the optimal backtested value in this example (unless the stop is hit first of course).

But I agree with you, in general a trader should never limit his profits artificially, unless he is day-trading and needs to be flat at the end of each trading day.

 

[bashatrader]

I usually hold positions no more than 8-10 days. I have found out that for my trading style this is the best time interval. I no longer day trade because of HFT.

 

[Grandluxe]

No timeline for exit.

If I am in a position, I hold until I break or the market breaks.

 

[murray t turtle]

If you're a trend follower, you're supposed to let winnings run. There is no time limit, just ride the trend to its end...........................

What's with the obsession with time limits?

%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
Amen and amen;
and the problem with discretionary trading is not discretion, the trouble is with the trader/investor Actually when i first started trading/investing, i amazed myself with my consistancy, lost money a HI %% of time.,LOL. BUT i knew that meant NO way markets are random, MY first trading patterns were amazingly losers, NOT random.

Substitute screen staring of bid ask, with monthly charts, weekly charts.....Warren Buffet like to talk about buy + hold forever, but thats a stretch + he doesnt do that all the time also.....LOL%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

 

[xelite777]

Actually when i first started trading/investing, I amazed myself with my consistency, lost money a HI % of time..LOL. BUT i knew that meant NO way markets are random, MY first trading patterns were amazingly losers, NOT random.

You lost money trading and that means the market is not random??

Never heard that one before

But the way, the only way to lose consistently is to constantly bet against the trend, you will get crushed in no time (and I am not even talking about the spread and/or commissions).

 

[smallStops]

%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
... Actually when i first started trading/investing, i amazed myself with my consistancy, lost money a HI %% of time.,LOL. BUT i knew that meant NO way markets are random, MY first trading patterns were amazingly losers, NOT random.

I guess that indeed proves non randomness. lol.

 

[elt4x]

Normally i wait for a good setup to make an entry and some of the time the r:r is very good and my trades can last for a few days before hitting my target. but on average i think may in a day since i do exit some positions in a few minutes or hours