How do you use time-stops when trading stocks?

Discussion in 'Risk Management' started by helpme_please, May 4, 2019.

  1. Robert Morse

    Robert Morse Sponsor

    I would say the most common way this is used is to use a market on close order vs an hour or a day or a week.
     
    #11     May 4, 2019
  2. monet

    monet

    He compared one angle to another, which does make sense.
     
    Last edited: May 4, 2019
    #12     May 4, 2019
  3. sillyw10

    sillyw10

    T = O

    O = M

    ~ T can = M but depends on O
     
    #13     May 4, 2019
  4. tomorton

    tomorton

    I don't use time stops on running trades, only on entry orders. Some short-term trades need to be opened with a certain market duration or condition ahead, so a late entry would probably not be worth the risk. For example, an entry order for a short-term forex trade set on Thursday afternoon which still had not triggered by late Friday afternoon.

    But in running trades, they can keep running as long as it takes for me providing the TA set-up remains valid. Which is why a decent strategy is more than an entry signal.
     
    #14     May 4, 2019
  5. What is O, T, M?
     
    #15     May 4, 2019
  6. sillyw10

    sillyw10

    T = time
    P = price
    O = opportunity

    M = money

    market profile uses TPO to calculate the "value area"..which can be good major S&R levels to watch..but do not be under any illusions..as..there is only one certainty when trading..which is..you can lose as easy as you can win

    if time stops allow you to trade effectively then use them..if not..then don't..simple as that!!
     
    #16     May 4, 2019
  7. dozu888

    dozu888

    It’s just a visual. Chart is easier to read if it’s 45 degrees based on the scale. Point is if a stock underperforms it gets cut
     
    #17     May 4, 2019
  8. qlai

    qlai

    "Experience has proved to me that the real money made in speculating has been SHOWING A PROFIT RIGHT FROM THE START. I made my first trade at the psychological time that is, at a time where the force of the movement was so strong that it simply had to carry through. There have been many times when I, like many others, have not had the patience to wait for the sure thing, I wanted to have and interest at all times.

    If the stock does not act as I anticipated, I exit immediately the time is not yet ripe - so I close out."

    - Livermore

    Note: from "How to trade in Stocks" ... From my notes, so may not be exact quote but very close.
     
    #18     May 4, 2019
  9. That's a time-stop, from the great speculator himself, Jesse Livermore!
     
    #19     May 4, 2019
    comagnum and qlai like this.
  10. dozu888

    dozu888

    honestly speaking, time stop is not that big of a deal.... the only draw back is really just an opportunity cost.
     
    #20     May 4, 2019