scalping news, stop loss how much? (us equities)

Discussion in 'Strategy Development' started by cactus_trader, Sep 11, 2009.

  1. hello, I trade the news and scalp intraday US equities, I am successful at it. I have a hard time to determine what my stop should be on trading intra day scalping?

    today, I shorted MEE on intraday news and well it looked like a great short, I shorted it at 30.08 and then got stopped out at 30.27. after 30.27 it rolled over and would have been great short, but I got stopped out.

    I just need to come up with a method on using stops (news trading) I believe in stops for protection on trading the news, but Im in the gray now on what one should determine their stop to be.

    I scale out of my winning trades based about charting and overall feel, but my losses I need a better way to determine "what Im allowed to lose on a intra day news play?

    thank you
  2. How can you say you're "successful at it" and then go on to ask BASIC METHOD QUESTIONS??

    If you're successful, that means you already have the answers to the questions you've asked, you can't be successful and then have no real idea how to manage the trades you're in. It makes no sense.
  3. nickdes


    I agree -- if you call yourself a successful trader at scalping then you need no advice.
  4. Figure out a way to get back in after your stopped. Tight stops are good because it gives a chance to reevaluate the trade. Just because you stop doesn't mean there is not a trade there. Sometimes it means you just got in too early.
  5. A better way to put it is "what you can afford to lose on an intra day news play" so that you can avoid going bust too soon.

    Pls don't take this personally but I think you are a newbie who thinks there is someone willing to give money away to uninformed speculators like you. On the contrary, when you short, someone with muscle may decide to buy some more to squeeze you out. This is the name of the game. This is the market. That player knows you cannot afford to lose too much. He knows or feels you use tight stops. He is glad to pocket your losses.

    I think you should read Chapters 1 and 2 of this book. This is a must read IMO for anyone who starts trading the markets. Search for a scanned copy in the web and read those chapters carefully since I do not think the other chapter are suitable for you at this point.
  6. CTan


    What is your equity curve looking like considering that you claim to scalp successfully without any stops?

    Instead of just looking for a method to put stops,I would suggest you to consider using a completely money management strategy.

  7. when you are done dreaming about your success, let us know what your risk to reward parameters and also what size you trade