What is your typical timeline to exit a position?
- Thread starter dbthitman
- Start date
You should always know your "destination" prior to entry. Then when you reach your profit target...exit the trade and begin preparing for the next trade even if the next trade is a re-entry into the same direction as the prior trade.
Simply, getting out too soon are words that should only be used when you exit a profitable trade prior to it reaching the profit target you had designated prior to trade entry.
Yet, if you're playing hindsight quarterback via looking at your profitable trades that were executed exactly by the book you've designed...that type of perfection will "never" be achieved. Instead, enjoy your profits and be prepare for the next trade opportunity because its not against the law to re-enter another trade into the same price direction.
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Db-Trend hitman
Really depends on the market + really depends on the trend.
For example an up trend, bull market ,also named ''long''[SPY];
usually lasts long-er than a bear[short market]
Time isnt usually very important;
unless its a derivative like a mortgage.....
Wisdom is profitable to direct.Dont really want to give you an exact number on average market time, that could crowd me
I tend to keep positions for several days, sometimes a week or two. Swing trading seems to suit my style more than pouring over 1 minute charts day after day.
This way I don't worry so much about margin (always have to use the overnight margin since I hold contracts) or slippage, since a tick or two or slippage over a week is not even a thought at all.
This way I don't worry so much about margin (always have to use the overnight margin since I hold contracts) or slippage, since a tick or two or slippage over a week is not even a thought at all.
Your question implies that you do not trade with clearly predefined rules.
Your exit point MUST be dictated by your own back-tested trading system, that's the ONLY to trade.
In fact the exit point is the most important element of a good trading system. Give me an exit point and I will make money even if the entry point is totally random!
My exits are based on one of the following:
- Profit target is hit or target zone is reached and an advance plan for letting the winner run takes over
- Stop loss is hit
- Trade is invalidated prior to the stop loss being hit and the trade is scratched
These scenarios can take anywhere from seconds to as long as 45 minutes (I'm a day trader).
- Profit target is hit or target zone is reached and an advance plan for letting the winner run takes over
- Stop loss is hit
- Trade is invalidated prior to the stop loss being hit and the trade is scratched
These scenarios can take anywhere from seconds to as long as 45 minutes (I'm a day trader).
Good point NoDoji.
But letting profits run is the hardest thing to do for most traders, and this is truly what separates the men from the boys.
In fact, most traders do the exact opposite : they let their losses run, instead, but cut their profits short!
This crazy behavior is, of course, what allows the successful traders to make money.