In the long run letting it all run to PT2 will net better profits. That is if PT2 has been calculated correctly. Trail a stop up if you wish. Breakeven is almost never a good stop unless you have been in the trade for a while and the trade has moved significantly in your favor.
see how the market keeps testing bearish price points, this is not what you want to see intraday... you want to see a market that keeps pressing the bullish price points.. if today was inherently bullish it should be test 80 at this point in time. ano
I'm out of this trade at breakeven. Can't seem to get any real momentum going to the long side here. Flat until I get another setup in one direction or the other. I really was hoping to see a nice run of stops above 1473, but the bulls seem to be taking an early nap.
No, I meant downward. Hourly trend right now is slightly long. Longs only or no trades should be the order right now. This is a very tenuous intraday trend which could reverse very very easily and head back down. Reminder to all-- the daily chart has some initial bull signs to it, not the least of which was the afternoon action of 8/16, but the weekly looks to have more downside to it at the moment. Just something that I keep at the back of my mind to keep from being too complacent with longs.
All I have to say is there a boat load of money to be made in the noise. 6 to 10 points stops ? I would rather make 3 to 5 trades with 2 point stops that all have a probability of becoming big winners versus blowing my wad on 1 trade with a stop that big. The market constantly presents opportunities to pick money out of it. With the vol we have had lately not even a 10 point stop is safe.
The problem is in the math. If pt1 has shown to be reached 70% of the time, but pt2 has only been shown to be reached 25% of the time, then one must put the money in the bank and not allow greed to let a winner turn into a loser. This game is about consistently making money hitting singles and doubles, not trying to hit a homerun on every trade.
Yes volente there is money in the noise trading . Lots of it. But if one learns to keep his stops out of the noise he can run a poistion from 1370 to 1470 and only give back 6-10 points at the top when he is stopped out and at that point he or she may already be short as well.