recognizing a loser before a stop out

Discussion in 'Trading' started by Gordon Gekko, Mar 2, 2004.

  1. i really have nothing to add here other than that i see this as probably the single biggest area where my trading could improve greatly.

    i'm talking about knowing what a winning trade does, recognizing when it is not doing that and get out...instead of getting out on some far away stop.

    this is a huge part of trading and i know it.
  2. basically, my trades are either winners, i recognize i'm wrong and get out immediately, or it goes my way a little bit but i get stopped out later.

    the last one is where i think there is huge room for improvement. many times i get out of my losers very very fast. however, i hate when a trade goes my way for a while BUT THE TRADE WAS WRONG and i recognize it late. there is probably something different about a winner and these trades that look like winners but turn into losers. i need to find out what that is, instead of waiting and getting stopped out way after i should have known it's not doing what a winner does.
  3. Heh? If you know what and can recognize a winning trade... trade it...

    One big thing to consider when trading discretion is that you don't trade to make an entry. You also don't trade to make an exit. You trade equally (if there is some weight to start off with) and with same amount of consideration.

    What do you mean it's a huge part of trading... Isn't that just your assumption? Maybe it's overwhelming you because of that "assumption"...

    You know what??? I don't "know" jack shit about trading. Who actually knows "IT"????

    Everything we think of the market is a mere illusion of our assumptions. Being and living that philosophy is what makes a lot of the traders able to take loss.

    Well, I guess I should stop assuming based on some linguistic patterns... anyways... good luck trading GG...

    I'm really happy you're finally profitable, lately...
  4. doji



    I find that I tend to get pretty twitchy on some of my swing trades where I'll bail out the first sign of trouble which has it's pros and cons, but tends to end up with me taking small losses on alot of trades that would have been big winners. Now alot of this was caused by me entering too early or too late and having more risk than I would like. Case in point early january I was looking to short STCR, I knew it could turn around if it broke above 25 so my planned entry on it was 23, I got sloppy and jumped in and shorted it at 22 but foolishly didn't want to assume 3 points risk so I put my stop at 24, which of course was hit two days later, it never hit 25 and I think its trading around 15-16 now. Since I'm primarily a support/resistance trader I try not to bail out before my stop is hit, which means I have to be very conscious of my entry, and patient.
  5. fan27


    Another ET member posted this link in another thread and I found it helpful.

    One thing I have done is to implement time stops. I am still experimenting with this but my basic plan is to give the trade 2 x time frame I am trading. (trade on 5 min chart will be given 10 minutes to "work").

    Good Luck
  6. GG,

    figure out what a "little bit" means exactly, in ticks, when your trade reaches your "little bit" move your stop to BE, and be done with it.
  7. Dumbasses...

    All GG has to do is to have clarity with his trades.

    He goes in with a specific reason. If the reasoning is not confirmed then he gets out. If it does he keeps it.

    1. Rules of trading.

    2. Detachment of trying to being right/wrong. Ironic but you make decisions without attachments. It's like watching a soccer game alone and tguessing who will win. Even if you're wrong it doesn't stick to the head or action.
  8. :p You tell 'em WD !
  9. sjp


    Hey Gekko, you ever had a winning trade?

    Amused Trader
  10. very funny.. :)
    #10     Mar 2, 2004