Aggressive break even move or let the price fluctuate ?

Discussion in 'Trading' started by Leob, Dec 7, 2021.

  1. deaddog

    deaddog

    I swing trade equities. I have a rule that I never hold a loser in my portfolio.
     
    #11     Dec 7, 2021
    nooby_mcnoob likes this.
  2. Leob

    Leob

    :thumbsup:
     
    #12     Dec 8, 2021
  3. volpri

    volpri

    Grab them profits.
     
    #13     Dec 8, 2021
    SimpleMeLike and Laissez Faire like this.
  4. Hello Leob,

    Yes it is challenging to measure manually if breakeven will help your trading style or not. Better if you can program it, but that may be challenging as well.

    If you are aiming for big profits, I think trailing is better. If scalping, just trade it and take a guess.

    When in doubt, take good guess.

    I really like the mindset of @volpri as he says just take the profits quickly. So I do not need to breakeven cause I try to take the profits fast.
     
    Last edited: Dec 8, 2021
    #14     Dec 8, 2021
  5. Breakeven is a concern since it is generally a random price point for most transactions, and/or the stop is pushed to breakeven too soon. However, there's something to be said for not allowing a winner to become a loser.

    I'll auto-BE @ + 5 ticks if I scalp for 6 ticks on ES. The ES fluctuates in far larger portions than 6 ticks during the day, therefore I'm not going to let a + 5 tick trade develop into a loser simply to obtain that final tick. If I sense that momentum is decreasing, I may override my ATM and lock in 1 tick. If I'm stopped out, I'll merely wait for another signal.
     
    #15     Dec 8, 2021
    Leob likes this.
  6. schizo

    schizo

    Man, it's the same approach as getting your ass out when your stop is hit. You can move the stop higher as prices go up, but the bottom line is you need to absolutely play by the rules you've set up for yourself.
     
    #16     Dec 9, 2021