All depends what you mean by a trailing stop. I do adjust stops manually as I go, but no, I don't let positions just run unless I see something major brewing. My day trades turn into position trades occaisionally. Maybe once or twice per month. This latest Yen move could have been one of those. I just analyzed it wrong. This is just my way of trading though. The guys who make epic money actually let their positions run. Contrary to popular belief on this site, scalpers are not the most profitable. Not by a long shot. Look at almost every trader who has made a fortune (say $100 mil or more): mostly position, some swing (Jones), and only one scalper I can think of (Baldwin). Thats only cause he was in the pit. No way he'd be able to do that online. As far as automatically calculated stops are concerned, thats a losing game imho. I place stops where they make sense (like under a trendline, or a certain % retracement). Automatic trailing stops almost always get taken out when you shold still be in the market, or when you have given up too much if you set them loose. Jay
just want to thank you ... after reading this journal I have started looking at the very short term EMA and find sometimes the dealers / hedge funds "gun stops" when they get a few pips over the line after it has changed its slope ... therefore I am at least more aware and will not try to fade them ... because if I do it can be a quick 20 pips against me been there ... done that ....
Hi SethArb, Yes, it's a problem with those cruel stop-hunters. But if we are in a long move, the stops extends the move (like yesterday), when the stops-area gets hit. P.S. Please keep us informed about your short term-strategy.
The system gave a buy signal in GBP (june future) around 1.8000 - and have not looked back since that. It's now more than 200 pips away...
Hi again, OK, but you could let the market take you out (with a stop), instead of going out, when your target is hit? Or you could let the chart decide it - looking after broken trendlines, double tops etc., when you are long.
Hi again, Scalping: When the market is i a trading range, it's OK to scalp. But I agree with you: Scalping does'nt make you rich.