Early exits are killing me.

For me, they are both fear. The reason jumping out of a winner is fear based for me is that I've had enough entries go my way a bit, before turning and racing to hit my stop. Therefore I exit a winner way too early out of fear that my target won't be reached and I'll lose money (again).

By the same token, I've had plenty of trades go my way by a significant amount, but greed wanted to milk out more of the trade. Of course the good winner eventually reverses and stops out and continues to go the other way. So again, fear of past greedy experience urges me to close early.

One trick I used to use, and have been thinking about again, was every time I wanted to exit a winner before my (reasonable and obtainable target), I would move my stop up by a tick or two. Kind of an anxiety-based trailing stop.

 

It is much better to have a comprehensive solution to all these underlying problems. The theme of the thread is really just a statement of symptoms.

 

This is becoming such interesting thread. Thumbs up for all contributions made.

I would like to share one simple method that I have successfully used years ago when I was trading equities, on how to be more indifferent on loses and letting winners carry on. It might not seem like a scientific method, but it sure did the job for me.

I used to trade KLAC a lot, with a default size of 5000+ shares. At some point during my trading career I have found myself with the same problem as FTrader; Stops were way too tight for noise and profits were too small compared to potentials larger profits.

What I did as a change, was to look for stocks that moved in exact correlation with KLAC. (most SOX do), and start trading 1000 share lots for each instead of sizing up in ONE.

This allowed me to look at each stock very indifferently. 5 cents moves against me no longer seem as large of a threat. I was able to see a much bigger picture, hence, able to respect my own initial stops and move up target profits when the time comes.

It broke my psychologic barrier.

Find your comfort zone,
Hope this helped

 

Momento, I used to trade KLAC as well, along with MXIM, QLGC, XLNX, NVLS, and a couple of more semis.

-FastTrader

 

Great screenshot

 

FT,

What kind of volume are you trading?

 

Thanks RAMOUTAR...glad you liked it.

I would like to add one more comment about the 3-1 thing. I might have confused some by saying "If I risk $100 and the market gives me $300, I'll take it" and then saying "My average loss is 2 ticks, so I try to make 7 or 8 ticks profit."

What I'm trying to say is:
If my average risk is $100 and the market gives me on
average $300, I'll take it.


I guess the key word here is average. I don't always
lose exactly the same when I'm wrong, nor do I make exactly the
same when I'm right. But, my average profit over the long
term is 3 times greater than my average loss.

So, for example. Let's say I'm trading a 2 lot on the ES. My average loss (2 ticks) will be about $60 including commish. And my average profit (8 ticks) will be about $190 including commish. And that's roughly a 3-1 ratio.

Sorry for the confusion...

 

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I strongly suggest basic daytrading or futures experience so you can understand as the EMini Monitor report does not function as a "Daytrading 101" or "Futures 101" course. The Emini monitor expresses my opinion on market turn points,direction ,targeting and stop areas with management basics included.Its not an advisory so there is no hand holding!

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I trade in 1,000 sh. lots, and on average, make 4-5 trades in the first hour. Then I'm off to work. I trade for about 25 min. over lunch and make another 1-2 trades. So, at most, I trade 7K sh per day (round-trip)

-FastTrader