i think this is interesting

Discussion in 'Trading' started by Gordon Gekko, Jul 17, 2002.

  1. say you track all of your trades and you know your average win and your max win. would it ever make sense to exit a trade just because it is doing better than usual?

    what i mean is, say your average winner is a 10% gain. if you currently have a 12% gain, should you exit because you know it is above your average and that it may pull back?

    the same could go for your max gain. if your max gain is 20%, should you exit a 25% gain because you haven't had one in the past?

    maybe something like this could be applied to losing trades as well.

    i'm not saying this should be done. i'm just throwing this concept out there to see what other people have to say about it.
  2. I think the profit for each winning trade should be assessed independently, according to technicals and Level 2 (for Nasdaq). If long, sell into rallies when you sense some weakness and re-establish the long if it is a continuation. If you trade with some size, try to trade around a core position and adjust your trailing stops accordingly. If you cap your earnings at about 20%, you'll miss a lot of good moves.
  3. monee


    not exit but maybe a tight trailing stop but this does eliminate the chance of the occasional windfall profit
  4. ssshhhh...keep quiet Gekko....

    (yes, short term traders should definitely pay attention to statistical probabilities)
  5. <img src="http://dmoz.org/img/moz/rocket.gif"></img>