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How do you manage your trades??

  1. Say you've got the entree and the protective stop down, what's the best way to manage the trade. Trailing stops, targets, multiple contracts, parabolics etc. Should one be more concerned with giving the trade a lot of room and time with many small profits turned to BE or a small loss? I'm looking at all time frames. I mean you look at a chart and you say that's a winner, but for how much? Where you see another marginal trade well it could be a small winner or BE at least or is that a mistake because I didn't let it swim around near my stop inorder to give it a chance to be a big winner.
    I know alot of people will say it depends on your personality, the market at the time and and there is no rule of thumb or maybe there is. I'm just curious on how diff successful traders do it.
    thx Steve
     
  2. This is an interesting topic for a thread, and should generate a great deal of debate.

    My personal methods of trade management are contingent on what my objectives are going into the trade... if I am going in for a scalp (and why I would choose to scalp in some circumstances and go for more in other circumstances is based on my proprietary indicators that I have developed over the years... a whole other debate!)... anyway, if I choose to scalp, I have a fixed stop and a fixed profit objective, knowing that I will have a 75% historical probability of being right... if I choose to go for more, I will pare out at sensible price levels (taking into account the price dynamics of the trade I am currently in)... dependent on current volatility, I may raise the stop on the existing segment on my position to breakeven or I may keep the stop at a more conservative level... if volatility is high, it obviously makes sense to take the more cautious approach i.e. the breakeven stop...

    The above general comments merely scratch the surface of my personal approach to trade management, but hopefully will get the ball rolling...

    This thread should prove interesting...

    May Jesus bless you all at this auspicious time of year...
     
  3. I have found that to be tough question, but a mechanical stop adjustment, like a mechanical entry and exit works best for me.

    Too often I found you're damed if you do and damded if you don't - "Ah, I shouldn't have tightened, stopped out of a winner on the top tick", or "Knew I should have tightened, I got stopped out anyway with a bigger loss, and could have had a great re-entry now"

    Stops keep YOU in control, like brakes on your car.

    It comes down to "fear" and "greed" - afraid you'll put "just" the wrong stop miss the move, and afraid to exit to soon with profit and miss rhat big move.

    I found trying to get it all got me killed. I now trade with a pro who calls the signals, and it's all mechanical. Start every trade risking 3.25 points, and an exit of 3.00. Tighten the stop usually every 5 minutes down to 1.75 poinst, and if the move to profit stalls, tighten even further. Protect your assets.

    Yes, they miss some points, but 88% of the days are a winner, and my small investrment has grow more than I ever expected in a couple months and now I draw a very big income (for me).

    The added extra; peace of mind. I don't need to "debate" every move. It's like driving a car; I don't debate about red lights, stopping for pedestrians (even when they wrong) not tailgating, though "everyone else" does. I decided my life and limb were more important than getting there 1 or 2 minutes faster.

    Hope you find "your" peace during trading.

    HAPPY HOLIDAY
     
  4. I agree with candle.I don't enter a trade for a scalp or swing.I take what I can get with my method. I place my stop , when I get a profit equal to my stop I move the stop to break even, and trail from there. This should be a good thead.
     

  5. But I do!! I do indeed enter a trade for a scalp or swing!
     
  6. I just re-read your post and see what you mean.I don't decide untill after I get in and see where it is going.
     
  7. I think "parlaying" your bet is the way to go. Just as previous posters alluded to, when you are up one cycle, move stops to breakeven. You are then letting your original bet ride, plus your current profit. You then take what you get, possibly 2-6 times your original bet or breakeven. In the end, your winners should average 1.5 to 2.5 times your losses.

    If playing with a normal distribution, your large # of losses would offset your large average wins, but the market isn't normal. It has a tendency to trend, so this method works well over the long run. It trends because the data is dependent on other data and because of atypical momentum. Traders on different time frames are both long and short, with stops placed in groups, that when hit, can cause the perpetuation of a move, sometimes for days. The laws of physics say that something in motion will stay in motion until an equal and opposite force stops it. This law doesn't always apply in markets. With enough fear and greed it is ignored, and a move is perpetuated beyond what physical law would dictate. Without these phenomenon it would be tough to successfully trade markets directionally.
     
  8. I hire a manager
     
  9. Or i hold them untin they come back.
     
  10. 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. 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. 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. tried to call you, 963. MAN, you really are behind bars. they let you trade in prison ?? what are you in for ??


    jack:eek:
     
  14. 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.