Hard Stop or Uncle Point???

Discussion in 'Trading' started by PubliasEnigma, Jul 16, 2002.

  1. PubliasEnigma

    PubliasEnigma Guest

    I was just curious to know whether the majority as I suspect always use a hard stop or whether they use their uncle point???

    Def of Uncle Point; The point in which you close a position because the market has obviously proved your position wrong or you simply cannot take the pain anymore...
  2. H2O


    So far, I always find out I use the 'Uncle point' when I'm NOT at my computer (Hard stop) but when I am at my computer, I see changes in the market and addapt to them so this makes a variable Uncle point.

    Hope this helps
  3. Publias Enigma

    I am still waiting for a reply to my question about your post in which you said:

    "IMO you are trading the best vehicle there is and don't even see it True the futures lead the rest of the markets, but they can also LEAD YOU if you take the time to listen..."

    How can the futures lead me? What should I listen for.?
  4. PubliasEnigma

    PubliasEnigma Guest


    At the risk of coming accross like a real prick here, that would be like describing the 'ode to joy' to someone who has never heard it! Listen and she will speak.

    Good Luck to you on your journey,
  5. Why wait for either point to get out? Why not get out at the point where the stock is not initially moving in the direction you had anticipated. Save yourself a lot of money, and you can always get back in.
  6. my uncle has nothing to do with this...

    hard stop should be in place but a bit out of reach and not the first option for exit, more of a special contingency cutoff in case all hell breaks loose

    trade should be exited not when it is 'obviously' wrong, that's too late, but rather when the probability of a win has deteriorated to a point where holding beyond that point would have negative expectation over a long run series of occurrences- optimal bail point depends on a grounded understanding of what is statistically most likely to happen next in the long run, NOT a feeling of pain or clear wrongness for that particular trade- of course, honoring the optimal bail point and dumping a trade with a small loss when it still has a diminished but viable chance of working is a hard thing to do for many folks (surprise surprise)

    of course if you are only risking two ticks or have a thirty second time frame then none of that would apply...
  7. Publias Enigma

    Why throw out comments like that if your not willing to enlarge on them?

  8. I think ol' Publias is a fan of direct experience, which can be vaguely described but not effectively communicated w/ words.
  9. PubliasEnigma

    PubliasEnigma Guest

    Dark you are the man! I was just typing this response as I got an email that your response was made :)


    The type of trading that I was pointing toward is of an existential nature not an intellectual one, therefore it pretty much defies conceptualization and words by its very nature. I cannot describe it you but I can tell you that it exists.

    For the record there is nothing mystical about what I am saying here, it is just a matter of getting in 'synch' with the market and letting her guide your actions! nothing more and nothing less...

    Good luck to you on your journey,
  10. That exactly the response I expected. You da man.
    #10     Jul 16, 2002