Quote from Trend Fader:
Do you enter on the pullback or on the breakout to new daily highs?
Also, what technique do u use for taking profits and stop losses?
What I do mostly as things hit the new highs and like them and I feel the day is strong I
1) Either throw out a bid if the spread is big 10 cents plus or
2) Just take offers if spread is small
For stop losses I try not to lose more than 400 bucks per trade but that does not allways happen
If I think that market is kind of so so I sometime put bids out below the highs at what I think support will be.
My thing is I usually have a bunch of orders out there working and as they get filled or not I adjust. Once I am in about 10-20 things and depending on P/L I just stop and ride the trends. Today was a good example of it cause I gave you all threee pictures as I started (in the red) then got some things to follow through then closed everything out into momentum.
I spread the risk of being wrong by being in a bunch of things so all my eggs are not in one basket.
Hope that helps.