Hello guys, my name is Tsepo and I’m 24. I started learning about stocks and the market about 6 months ago and actual trading about 2 months ago. My profit factor is 2. I have 2 questions, how do you manage exits on smaller timeframes and has anyone ever had a sort of mental block when trying to take longer trades? I’ve watched 5-6 swing trades go in my favor 50+ points each in the past couple of weeks and it’s really been getting to me because I didn’t take the trades even after I saw patterns on the larger timeframes and marked out the proper target areas. I understand this follows the emotional side of trading but has anyone ever encountered the same thing and how’d you get past that? PS: I’d really love a trading partner to talk about swings and day trades with.
In this market " ........5-6 swing trades go in my favor 50+ points each ..." going short right? If not short then stop standing on your head, bad for your other head.
Yes going short. It’s really frustrating when you set all the targets and your entry zone on the daily and weekly just to chicken out and watch the profits go.
If the above statement applies statistically true across a sufficient number of your trades - a big if, then why not ease into the hot tub. Why not get started like this - exit as usual on 80% of your trade and let the rest run to your larger timeframe and marked out proper target area. When you're ready go to exit 70% and keep 30% runner. 60/40. 50/50... Eventually you'll end up where it works best.
That’s a very interesting way of looking at it. I’ve thought about something like that before and I’ve been experimenting with OCO’s on paper to try a variation of that strategy. I usually just go based on the MA cross back around daily support/resistance. But I’ll definitely experiment with that.
Hey. The romance from movies like the ,,Big Short" makes us to dream about doing something similar, yet, understand, that institutionals make alot of money by squeezing those shorts. Shorting, is anything, but the first thing to begin with.
You need a solid trading plan. You can't trade on a whim. You won't last long when you do unless you treat the market like a casino. Once you've made some big money, you take your money and you never come back. If you ever come back, you will give back everything you earned, and I mean everything and even more. If you want to be in it for the long run, you need a solid, systematic trading plan.
Yeah also what those people did was after very meticulous analysis both quantitative and qualitative and careful research (of course the movie tried to make some comic spin on it) and not to mention these people are all experienced trading professionals who have been trading for at least over 10+ years, either on their own or working for firms; they are not clueless noobs who are just starting out. That ain't their first rodeo!!
I do have a trading plan and I average twice what I risk. However the exits are somewhat of an issue. For instance a trade goes 10-12 points in my favor but I wind up taking 7-8 of those points. Also just kinda squeamishness of taking swing trades. I only trade if there’s a pattern/retest of the pattern on the daily with my stop above daily resistance/support. I use 60min/daily support/resistance lines for the target areas.
I agree but I’m not just shorting because the market is down. I short based on patterns and retests on the daily/weekly/60min timeframes.