Question for profitable traders about timing

Discussion in 'Trading' started by zanek, Feb 5, 2010.

  1. zanek


    Can any profitable trader tell me what they would do in the following situation:

    Your system tells you to buy, but for whatever reason, you missed getting in at your target price and see that the trend has already started.

    a) Do you still buy in ? If so, how do you determine your stop since it may be further than you like from your stop-loss ?

    b) Stay out and wait for the next signal

  2. rosy2


    automate the system so this never happens
  3. reduce your position size by the factor that the price deviated from the signal..

    $10.05 signal

    10.30 fill

    Stop is $9.95

    original risk was 10.05-9.95 = $.10

    current risk = 10.30-9.95 = $.35

    (.1-.35)/.1 = reduce position size by 2.5 times.

    so instead of risking $100 risk $40.

    This above theory would work If you know your Expected profit is $.50
  4. lindq


    Don't chase price.
  5. What he/she said.


    My system is based on timing, is 100% automated, and profitable.
  6. GG1972


    +1 best advise imho

    Take the trade based on the new parameters as above
  7. If you are scalping and day trading the sh*t out of the market, then obviously your entry will be of greater concern to you. I have not seen this as a sensible way to trade the markets and look at the bigger picture, where the exact entry price is of lesser relevance.

    When I place my trade, I am very convinced of success that I evaluate the risk potential quickly, while everything in me tells me to just get in already. If I am not enthusiastic about a trade, I see no reason to enter in the first place! I have pondered in great detail about all the possible outcomes before entry. Experience is the key for my way of trading, though. I'm no blind signal/blackbox trader.

    To answer your question: a) Yes, I get in anyway (considering psytrade's method). b) No way!
  8. If you miss your entry you dont go and chase the market, you either wait for a new situation to arise or if you are willing to reduce your RR ratio, lower your size with a larger stop.