Read a little here and there. Why would people keep money? Did you notice there are some problems out there? What is the average commission on a reverse mortgage? What do you think the average size is? What if you're getting a jumbo on two houses in a state with a cap? Where do you go to avoid the cap? What is your margin range of choices? Is 29,4K a good comish on a 1 mill SPIA? If a person does 10 in a group, does it take more than 1 1/2 hours? How many pages were filled in for an app? Can sigs be faxed? Are comishes pooled for override %'s? What is the range of overrides on the gross? How long it the class for the reverse mortages? How long is the class for the SPIA? lol.... read a little take a few classes... hire a few employees..... What is 350k min annually look like to a new employee? One sale a month?
wow, long post! 10 points as in A) was an example which might be an average optimal exit for a trader that doesn't scale out, a trader that does though can extend optimal exit to 20, 30, 40, etc points. And let's not exclude win/loss ratio. As we all have different stats, it would be very difficult to compare 2 methods as optimal targets might be different, win/loss might be different. I couldn't manage ES, because it doesn't have enough momentum and range expansion, DAX on the other hand delivers both on most days.
+107 pts DAX today scalping 1 & 2 min chart trading 3 contracts scaling out. It's equivalent to 71 ES pts $ value, I was never previously able to achieve that trading ES scalping and not scaling out.
Trading is very personal, first and foremost. With that said, I believe most traders blow their accounts by taking large stops and selling at minuscule targets. Naturally a recipe for disaster and possibly the reason why most fail at this. Scaling out is ok if your first target is greater than your stop or if your accuracy rate is real high and you trail your stop accordingly. Now, the fact that you can take a full stop on a full car size is not very appealing to me since risk management and capital preservation is imperative in trading. Averaging up is the way to go but hard to do so from a psychological perspective. Trading should be about minimal losses and winners that range from small to large. Averaging up promotes this, but the fact that the losing rate is high and many times winners become losers makes it extremely hard for traders to follow this money management strategy. In my opinion, it's the way of the pros. Only add to winning positions. ie Pullbacks on a strong uptrend, time to buy(add), unless the major trend changed of course Only sell your positions (all) when the trend has ended. Remember the old saying....."the trend is your friend until it ends...." Again, the fact that the market trends 20% of the time, and chops the other 80% constitutes high amount of losses, albeit small, but nevertheless the money management strategy is a winner if you have a good sense of price action and chart geometrics. Key here is catching the birth of a trend, or as some call it, the BOAT, and not following the crowd when the party is almost over. As far as mind tricks . I don't know about you, but small losses never bother me ..and they should not, part of trading, inevitable. As far as "winning" trades becoming small losses or break even trades, if you trade for good targets then it was never a winner in the first place, according to your plan. And as you probably know or should know, plan your trade, and trade your plan..... Good trading. Anek
I say let people blow the load in one shot.. more money and liquidity from the ego driven to be forced out for the rest of the ego-less self-aware.
Exactly. I have heard this called trading around a core position. Pulling some off when you think the market is overbought, adding when undersold, while maintaining a directional bias as warranted. If we KNEW what was coming next, then yes, everything would be all in or out; of course, this is not the case where I trade. A product that is steady and does not reverse at a moment's notice might work this way, but in more volatile environs it is prudent to bank some when it's there, not allowing for the profit to make a loss, as you mention. I'm with you.