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. themickey

    themickey

    writers-in-pub.jpg
     
    #211     Dec 8, 2020
  2. volpri

    volpri

    #212     Dec 8, 2020
    themickey likes this.
  3. %%
    Depends;
    today is one of the many good times on UPRO exits.
    IF one owns a daytrading company[+ i dont], not long @ all with your workers/labor.............................................................................
     
    #213     Dec 9, 2020
  4. deaddog

    deaddog

    Depends on where you got in.
    If you went long at the 200 ma you might want to let your winner run. :)
    (I don't have a position)
     
    #214     Dec 9, 2020
    Flowfollower and murray t turtle like this.
  5. %%
    I did+ was planning on collecting dividends on upro/like last DEC/let the profits ride.
    BUT i like getting paid every now + then/so i did exit on upro today.EVEN today/it still went up more than i thought it would....................................................................
    200 dma is a great dma/but i got in UPRO,later than 200dma.Good moves/maybe not 100% like 2019
     
    #215     Dec 9, 2020
  6. comagnum

    comagnum

    AAPLs volatility is on par with the QQQ most of the time, it is not very often when its range is expanding- prime time for a swing. You can find more volatility from small cap stocks.

    Typically swing traders position size is 5-25% of cap and hold a handful of positions when the market conditions are good.

    What helps me in letting profits run is to take a partial profit, than I move the stop just below were I took the profit with a bit of wiggle room, this gives me a free ride to make more.

    When you leave a winning trade that is still looking good you have to keep in mind your'e next series of trades may be losers & you may be watching the trade you exited soar - the partial profit will remedy this scenario to some degree.

    I really dig this clip - there is some real wisdom in it even though he is drunk.

     
    Last edited: Dec 9, 2020
    #216     Dec 9, 2020
    Flowfollower and Axon like this.
  7. Overnight

    Overnight

    That man seems so happy and fulfilled. I hope to be him some day?
     
    #217     Dec 9, 2020
    Axon and comagnum like this.
  8. How do you know the stock will stop at $130 and not go higher? And why does trader 2 enter later? If both enter at the same time and trader 1 exits earlier then trader 2 will profit much more.
     
    #218     Dec 11, 2020
    .sigma likes this.
  9. .sigma

    .sigma

    For me, letting winners run is a myth. I've left so much dough on the table you'd think I was selling puts in $PZZA

    Psychologically, leaving money on the table makes me feel worse than realizing a loss.
     
    #219     Dec 15, 2020
    Flowfollower likes this.
  10. deaddog

    deaddog

    How do you fell when you sell for a quick gain and watch your position double?
     
    #220     Dec 15, 2020
    .sigma likes this.