The myth of letting your winners run

Ok last trade gotta hit the garden. Burning daylight outside. Averaged down long on a PB. Do you see why I grab the profits instead of twiddling thumbs? See what happened right after I exited?

 

Sounds good.

Mind me asking what you typically average per day on the ES per contract?

I certainly do not average down at the moment, nor do I know if I ever will, but I do respect that there are traders like yourself and @Handle123 who seems to do it successfully.

The key with this as everything else in trading is knowledge and having a plan.

Reckless averaging down is a recipe for blowing up, but the way you do it seems reasonable.

 

You do have a thread about day trading, I am going to take a look:
https://www.elitetrader.com/et/thre...-trading-the-es-nq-ym-mes-mnq-and-mym.336259/

 

Here are the trades from a 30 minute chart and a 15 minute chart. Do you really think I am placing those little buy and sell triangles manually? 4 trades. Four winners. 2 averaging down. two straight scalps. All long trades. Locking in them profits.... cutting short them winners. averaging down them losers.

bye gotta get to the garden.

 

@volpri Like I said earlier, letting winners run applies to pure trend-followers, not scalpers or range traders.

 

Well it is in a SPBL trend (small pullback bull trend) as I type. Look Eastwood I gotta go. The garden calleth. If Ringo shows up take care of him for me.

 

What? You want to make money scalping the e-minis or plant zucchinis in your garden?
What's the matter with you?
Just kidding.

 

lol, I am glad you understand and I am not the only one.

 

Tradex,

You are 1000% right on this buddy. I have been testing the simple moving average exit method and trailing stop.

You right man. Gotta back test and see what fits you.

 

Be careful, studies show that buying stocks making 52 week highs (or lows) will not give you a very significant trading edge.

Here is a backtest that proves it. The author concludes : "However, at the very least, we can come to the conclusion that there really isn’t an advantage to purchasing a stock based on the 52-week high or low."

https://www.equitieslab.com/buying-high-vs-buying-low/