when you were trading stocks, how much of a profit were going for as far as points are concerned? Did you have any favorite stocks you traded?
More than anything I use the idea of it breaking through the S/R level usually by .50 - .75. I also look at my moving averages to keep me in a trade. I have had it a few times when it 1 1/2 points and start reversing. When that happens I have a problem, do I take one point or wait and see if I get stopped out. I have been trying to take the money and run and if it comes up again I try it once more. If I still don't get 2 points on that trade set up I don't take it again that day. That happened to me one day this week, I think monday.
I like stocks and options on IBM and Nokia. My last option trade was NOK 17.50 calls when they were .35. Sold them when stock hit 21.50. That was a nice one but It seemed like it took forever. Bought them in Oct sold them in Apr.
I just try to limit my losses as much as possible. Sometimes you get that feel that it may not happen and I'll take a 1 point loss and drive on. Sometimes I just take 1 1/2 point if it doesn't feel right at the end. My entries are almost automatic but once the trade is on I use a lot of intuition. If you know what I mean. I do really try for 2 points just about every time though.
There's a third option of moving to BE in the event that the target isn't reached. Waiting to be SO can be a trap, as you know by now, much less hanging on.
That's why I said that was the case today. The first level of R was at 1268. But the second was at 1271. So if it didn't barrel through 1270-71, better just to take the 2pts and be glad.
You are exactly right. I am not to proud to do a market order and take 1 or 11/2 points. If it starts reversing after 11/2 I will get out. Better to take profit than to watch it reverse and next thing you know you are losing money. I can always play it again if it comes back up. Usually when it comes back up it does it even stronger the second time.
4re - Nice work on today's short and long break out levels. Earlier you asked about what methods others use. I primarily use MACD/Stochastic divergence trades at support/resistance levels (using H,L,C and pivot/S1/S2/R1/R2 as guides). So if I'm getting stopped out, you'll probably be entering. Sandy
You weren't by any chance a TI trader were you. I know Traders International uses that also. Actually the pivots and also fib retracements. Those are the things that form the strong support and resistance levels that I use. I just wait for momentum to build to the point where it breaks through and when it does I am there waiting. Hope you had a good trading day yesterday and next week. 4re