Thought for the day

Discussion in 'Trading' started by Cutten, Oct 5, 2003.

  1. A good exit signal is an entry signal in the other direction.
     
  2. Simple yet profound. One can make much more money from a trading framework than a trading system, i.e., a system or combination of systems that is "all in" the market.
     
  3. hm - are you sure?

    i'm not - the end of one trend doesn't necessarily indicate the start of a new one in the opposite direction - what if the end of the trend just marks the start of the chop?

    exit signal = entry signal would mean being always in the market is a good idea - which is a flawed perception - imo.
     
  4. I agree this is definitely a screw up for several reasons.

    Thoughts, meaning uncomplex straightforward hard excellent statements generally wind up being stringent cautions that can really preserve capital.
     
  5. Are saying that an entry signal in the opposite direction to your position is NOT a good exit signal?
     
  6. You may not be asking me, since I only support the view of another, but YES is my answer to your question.
     
  7. "One"? Which one? I have never met one?
     
  8. So when you get an entry signal on the short side, and you are long, you stay long.
     
  9. How about when the reason for your entry no longer exists.

    regards,

    Bruce
     
  10. This qualifies your opening post more specifically, and now I agree with it.

    I saw your post before it had been replied to and was going to post in reply what gerry and grob did, but I have posted similarly before on the same topic, and wanted to see this time what others thought.

    But yeah, talk about the sweetest exit of all.... that's it! When your long position signals a short or vv, then your money stays working for you instead of waiting for another trade to develop. And if that new trade works out, it means you got just about all there was to get on the original one.
     
    #10     Oct 5, 2003