Dealing with HOD and LOD(AHG traders)

Discussion in 'Trading' started by ggoyal, Sep 5, 2008.

  1. ggoyal

    ggoyal

    Hi,

    How do you AHG traders deal with keeping your long position when it makes newer highs for the day and shorts when making LOD's?

    To me, it's a psychological barrier because I am able to identify trades, but i find myself saying "fuck, i should have let price taken me out". in other words, i exit trades pre-maturely because I "feel" HOD or LOD can't move anymore, but it does.
     
  2. For me, if the HOD looks like a large area of resistance on the chart combined with being the HOD, I would take off half, and hold the rest. If the HOD has little resistance, I would be more lenient to let it run. The same for LOD and strong/weak support.

    Looking forward to hearing other responses.