How do you manage your trades??

Discussion in 'Trading' started by stocon, Dec 26, 2002.

  1. Personally, I hate to use a trailing stop because you're always getting out on a pullback. I would rather try to exit on an extreme move, with a failsafe trail of maybe 50% of open trade profit. Two rules that have helped me over the years are never let a winner go to a loser and decide if you can handle a pullback of the move without exiting. For example, if the ES has moved up 10 points off a breakout and you are long, if you can't handle maybe a 5 point retracement, you'd better start looking for an exit point. Otherwise, the typical pullback will shake you out at a significantly less favorable price.
    #11     Dec 26, 2002
  2. stocon


    I understand your thought process with a ten point gain and can see how riding out a retracement might make sense, but what are you doing with a 2 pt. gain? Does your stop immediately go to BE? Never let a profit turn to a loss would indicate that you might. What's going on in the early parts of the trade? In your mind?
    TIA Steve
    #12     Dec 26, 2002
  3. stocon


    Thx for the link. It's a load, any favorite parts? I see they have the never let a profit turn to a loss, but at the same time they expect 50% winners, tiny losses and 20% big gainers to make your profit. I guess 20% of our trades should just go straight up??
    #13     Dec 26, 2002

  4. tried to call you, 963. MAN, you really are behind bars. they let you trade in prison ?? what are you in for ??

    #14     Dec 26, 2002
  5. I go one of two ways, depending on how actively I am trading.

    If managing passivly, I set an automatic trailing stop equal to the distance to below the previous support (for a long, above previous resistance for a short).

    If manageing more actively, I will continue to monitor previous support resistance and adjust - this is probably the better way, but auto is less stress.
    #15     Dec 26, 2002