Discussion in 'Trading' started by zxcv1fu, Nov 5, 2002.
What kind of tools are required?
That should be a function of your OS and/or "layout" type functions of your software. If you can't find it there, perhaps you can try Bigmonitors.com. They might have some window managing software.
My question is more toward trading techniquikes: do you use stop order (what kind) to enable you to maintain multiple positions.
I draw horizontal lines on my intraday charts at the target and stop point so I can quickly glance and see how close the equity is to the exit point. This becomes especially important for multiple positions. As the stock moves closer to the target, I move the stop line up (or down for a short). I never move the stop line if the equity is moving against me. It works well for discipline to have a visual cue like this.
It also works well in that I can gauge the risk between letting the equity hit the target as it gets closer and actually closing the position.
Whenever managing multiple positions, we always use physical stops, usually even with just one position. Not only do physical stops take the emotion out of making the decision to cut the loss, you can also trail the stops to lock in profits in the event of sudden reversal with your positions.
Of course you will occasionally get your stop taken out by a few cents before the stock reverses, but it only takes one time of missing cutting the loss to make up for 20 times of getting juked out by a specialist.
I swear by physical stops and my profitability has increased dramatically since I began using them.
It's kind of a function of how many positions you're talking about. 3 or 4 daytrades, you should be able to keep the charts and LevII windows open on a screen. 40 or 50 positions, you need a minder box with alerts triggered. Personally, I wouldn't leave stops in the market but then I tend to be paranoid.
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