The myth of letting your winners run

Discussion in 'Risk Management' started by Flowfollower, Jun 2, 2020.

How do you do it?

Poll closed Jul 21, 2020.
  1. Outlier hunting

    20.7%
  2. Profit target

    44.8%
  3. A combination of both eg trim and trail

    34.5%
  1. Tradex

    Tradex

    That means the next round of Stella Artois is on you.

    [​IMG]
     
    #121     Jun 3, 2020
    volpri likes this.
  2. Tradex, My style as well.
     
    #122     Jun 3, 2020
    Tradex likes this.
  3. volpri

    volpri

    Just decided it was just plain and simple too hot for gardening so will rest and later today go back out there. So I might trade a little. I don't like averaging down in the last hour. So we will see. May just take a few straight scalps. So far all my trades been on the long side today.
     
    #123     Jun 3, 2020
    yc47ib likes this.
  4. volpri

    volpri

    one of my favorite beers
     
    #124     Jun 3, 2020
    Tradex likes this.
  5. Thanks Tradex,

    I trade 5 minute charts only. Over the past one years, exiting has been and still is a challenege.

    When to exit?

    1. If profit target (say Risk = reward, or some local resistance created by price). You take the money, You smile and jump. If price blast through that resistance or your profit target, the mind will start not liking you and asking. "Why didn't stay in? Look at all the money you missing. Damiitt, let your winners run..keep your risk smaller than reward....blah blah blahhhh, Ugghhh, now we have to get back in the trend, but what if its a loser and wipe away all those profits,...ugghhhh crap, guess I better get back in. "


    The answer: Use an EMA between 1 to 10 to exit. Now I have a logical price behavior way of exiting positions, if price get below that EMA ...."ok mind, you see the bears getting weak, that is why exit...now leave me alone" LOL



     
    Last edited: Jun 3, 2020
    #125     Jun 3, 2020
    Tradex likes this.
  6. volpri

    volpri

    Another NQ straight scalp. Yep again cut them profits short. Grab them pennies. Now at 900 b4 comm on NQ. A straight long scalp. Anybody want a beer?

    16 nq.jpg

    17 nq.jpg
     
    #126     Jun 3, 2020
    SimpleMeLike likes this.
  7. deaddog

    deaddog

    I've read everything he has written. Part of my strategy is based on his experiences.
     
    #127     Jun 3, 2020
    SimpleMeLike and Tradex like this.
  8. comagnum

    comagnum

    Most of the more seasoned swing traders do both - ring the register at a smaller target, leaving half or a third of the position to run - why not, its a free ride?

    These runners, when manged well, will add significant profit to your bottom line.

    I always exit just prior to earnings and reenter the day post earnings if has not tanked.
     
    #128     Jun 3, 2020
  9. Tradex

    Tradex

    But again, how do we know if scaling in and out of positions is the optimal move (money wise), versus going "all in" right from the start?

    See the problem here?
     
    #129     Jun 3, 2020
  10. deaddog

    deaddog

    I will scale in and exit the full position.
     
    #130     Jun 3, 2020