Rule of 10 Journal

I totally agree with you that the reaction high/Low is the only way to go. If you went with the entry than you would be going against the rule of ten itself. I am also in agreement with you on your choice of using a trailing stop. Lets face it! We really have no way of determining if its a home run or a hit. But using a trailing stop brings you closer to hitting a home a run.

 

What's the entry method? and how does it differ from the reaction high/low method (which I assume that is what I'm using)

Yesterday was a very nice day, too bad I only took one swing at it (real money). My work kept me busy and away from active trading screen. That and the network had internet problems.

Overall this rule of ten really fixed my entry issue, so much so that now my exit is the problem

Then again I've only had a day's worth of "proof" (been following it since the start though).

 

In my opinion, it is absolutely critical that you know what your exit points are going to be AS SOON AS as you have established the "entry"...1) stop loss
2) profit level(s)
and it is important that you know why you are doing it so that you don't have any post mortems.Your confidence level will build as you have then become decisive.

 

I 100% agree. Before you ever pull the trigger, entry, exit and stop should already be defined. As far as restricting your profit using a predefined target, that is where scaling out and a trailing stop come into play. A trading plan in needed for every trade. So many newbies fail to understand this critical process and that is why they throw good money after bad.

 

I agree with you both. I should have worded my issue more properly: what I mean is that my entries now are really close to turning points, whereas my exits aren't.

I'm currently trading with 1 or 2 positions max, so scaling out isn't readily possible most/all of the time.

 

long setting up at 1282, reaction high: 1292.

 

Would it not be 1283 as we had a high 1293 late Friday...you could be right, that is why I am asking.

 

I'm using the more recent price action of this morning...Friday just seems a little to old for me...but, 'to each his own'

 

We are long from 82.25, according to my chart the hightick was 92.25 (just before 8 am)...

 

Either way , stopped out -3. Looked ugly all morning.