gerry875, Your question is too general... post a chart example of a trade with your indicators (if you use indicators)... I will look at the chart and answer in reference to that chart. Simply, every trade is different. Therefore, one size doesn't fit all. NihabaAshi
The bottom line imo is that you need an edge in this game to begin with, or else it's futile, no matter how much money you start with. And it has to be a decent edge, not just 51/49, to even begin breaking into the black beyond commissions and slippage. Once you've found an edge, you've only just begun. What else is there? To quote Socrates: Know Thyself. Mastering self-discipline is a much more arduous, lengthy, and costly task, but it's only after you've learned what your own weaknesses are -- letting losses run, overtrading, emotional/reckless trading, the list goes on -- and how to best remedy them -- only then can you begin to depend on trading for a living. You can have the greatest edge in the world, but without the discipline to admit when you are wrong, blowing out is only a matter of time. Don't try to be a hero your first few months or even a year after you start out. Imo, everyone must learn how to fail before you can even begin to know how to succeed. It's an extremely long and hard road ahead, but once you've gotten past the turning point, you'll know it instantly, cuz that's the point when you realize that no matter how little you have in your account, you'll be able to earn a living. A properly applied edge balanced with ironclad discipline will yield geometric gains.
well - it should be a general question - there is no specific chart i could post now. of course i agree - every trade is different somehow.
Ok...since you said it should be a general question... I can only give a general answer. Thus, it most likely won't help because I'm sure you were referencing to a particular situation. Here's your original question to me... If I was in the ES and I'm at a 1 to 1.5 point profit...I would move my initial stop into a trailing stop...to profit by 0.25. However...depending upon the situation...I would have done a few other things. Yet, since we are talking generally...a minimum of a 0.25 trailing stop profit would have been used. Note: I don't mean 0.25 away from the current price in that situation...I mean 0.25 profit that's away from my entry price. So that if it reverses and starts to go against me...I can at least walk away from the trade profitable and with my commissions paid for. I just want you to know that I see a difference between a initial stop in comparison to a trailing stop... one reason why I wanted some more specifics on a particular situation. Thus, the answer above was assuming you were talking about trailing stops. NihabaAshi
thank you, nihaba. btw - how many ES-pts. is your initial stop? if you are in a profitable trade (say - 5 pts. or more) - would you rather widen or tighten your stop?
My initial stops varies...depending upon the trade setup or price pattern. Also...when I adjust stops...they may be widen or tighten...depending upon the trade setup or price action. Note: I use Bollinger Bands, Price Exponential Moving Averages, MACD, Stochastic and Japanese Candlesticks. The above always determines where I put any kind of stop. In other words...I don't use fixed stops (one size fits all) because they have the tendency to cause more problems than good. NihabaAshi