How long do you give yourself to let a trade develop if trading on the daily chart? Wondering about letting a trade develop vs. knowing when to accept defeat and stop out. Is it all about breaking support and/or resistance?
Dangerous to have a single rigid exit rule, safer to look at the overall context of a position, and this suggests generating a spread of potential exit signals for each strategy. So, for each strategy, you need to identify what the ideal position would look like after entry: the signal is what gets you in but what you need then is for other market players to be seeing their signals also and joining in the same market. Suppose there might be 4 or 5 or 6 characteristics that must align to depict the ideal position to be in: you might then exit if any 2 or more of these fail after your entry.
Exit should be the same rules as the enter.You`ll eventually hit a homerun, but have to tread water.Should you be done for the month when you hit the homerun?Probably.
only at the beginning, when right after the position is taken the market goes against it but if that did not happen and the situation develops trader must take in consideration that development and re-access the situation through many different applicable rules of the method that come into play depending on what and how develops on the screen.. and when it develops further - another reassessment... and another one.. that what its called position management
%% Mainly=have a selling/buying plan before entry. Like based off 50 day moving average+ SEPT is knowing for selling, have to figure that in......A good UP trender, downtrender like QQQ....... =plenty of room; single stock maybe not as much wiggle room/stop. Print off some charts like QQQ......+ study.
I would rephrase your question in this way. How long would I wait for the trend to develop before I get in? Knowing that 60% of the times, trend fail in its early stage.
%% Sounds about right; for bear market. BUT SEPT, as Stock Traders Almanac notes; SEPT usually does not even do 60% success /uptrend.Lot of markets are like that,apple farmers harvest huge red crop usually SEPT = prices drop + drop/ red candles.....
I have exit defined before I enter the trade. If it hits the exit I'm out. Could be 10 minutes could be days or weeks.
I wait for the close, then wait for the open, then the close ... repeat. If I watch intraday it's on the hourly chart to see how price is reacting to specific price levels. Right now I am short the AUD/USD Futures. It has rallied today but I am not touching it until Sunday nights open if anything. The closing prices are very important when trading daily charts.