Small Stops

Can you define "micro stop" ? I would suspect it can't be at the sub-tick level, so how many ticks would a "micro stop" be for you?

My 2nd question is, how far is your 1st target using that "micro stop" and what win% can you achieve ?

 

Less debates more samples, thanks

FoN

 

Micro stops. ROFLMAO

Anyone for sub micro stops?

Quantum molecular stops?

You newbie jerkoffs slay me.

Keep moving your account balance into mine and have a sub atomic stop day!

 

Where a trade fails - is where it fails

Entering when price is closest to that point – either initially, or on a pullback/ retest (which obviously depends on one’s trading style / set up) – is what risk control is all about

Bad entries (for instance chasing) will, as they must, lead to more risk (reference first sentence)


Having the patience to wait till the opportune time to pounce presents itself – is an important skill

Granted trading momo is a bit of a different animal, but – those must also have small risk – it’s a momo trade after all


Disclaimer;

My stance above is with respect to trend trading…. counter trend trading inherently carries more risk (because we never know if/ when price will pull back…, or how far)


RN

 

Thank you for your post RN, I always enjoy reading when you post informative stuff, which is quite common.
Sometimes i get a little lost with the whole thing about trends within trends and I end up not knowing if im trend trading or counter trading.

For instance, say you got an uptrend, and you waiting for a pullback to get long, you get long, the pullback continues, you get stopped and now price is at halfway. Which is the main trend now is it still up ? If so why!

Fon

 

I've had the most success buying after a huge candle in the direction of the intended trade. I believe Seykota had a similar style. Schwager got a quote from him saying essentially that his buy stop was above the market where he expected the momentum to be greatest, for the lowest risk.

It's the "aha" moment, after the rest of the setup has been seen by other traders waiting to pounce.

Micro stops don't work here. It's a very creative situation.

 

Thank You for the kind words FON



When price is in an uptrend – I typically have either a trend line, or a channel – slanted up (most times it’s a channel)

So I’ve entered at the base of that trend line/ channel – with the target being other side of the channel

In your scenario – sounds as if price has hit the top channel (which meant it was time to short…, or wait on a pullback as you described)

============================================================


Btw if you’ll start observing – you’ll begin to note 50% is an important level – in channels, and in pullbacks/ retracements... in identifying momo... drawing valid trend lines/ channels

============================================================

But to answer your question…..


What is price saying…

May be it pulled back to 50% - preparing to take off

May be it pulled back to 50% - and will continue to the bottom of the channel

May be it‘ll start ranging

May be it’ll hug the 50% and creep up


Where is price in the overall trend (bigger picture).. what time it is it.. where is the nearest horizontal S&R

Forgot to add... - what is volume saying

I would trade according to what price is/ had been telling me, and consider using the 50% line as the stop


But what I would do – is really of no consequence – is it Sir


RN

 

Yes Sir
RN

 

when this kind of event happens, this is when we should add to winners right ?

 

Ok, I'll bite. How the hell do you know what your worst losing streak will be ahead of time?