Discussion in 'Trading' started by Phenom, Mar 15, 2007.
Does any here employ the use of a time stop, especially intraday traders?
Not time stop per-se, but I do use barcount on a fast chart for protective stop tightening.
Of course, everything depends on the expectation of the setup being taken, the nature of market at the time, and the volatility.
If you think you need time stops, then you are entering during consolidations, which you have no fucking business doing.
sure. all my positions are closed by EOD.
make any sense?
Damn, I should of had a V-8 instead of Vitamin Water this morn.
There are numerous time when a trader opens a position and price action begins to consolidate. It is impossible to know when price will consolidate and that is the purpose of a time stop. For intraday traders ask yourself this, if price is near your entry point a hour from now, how good can the trade be if anyone can enter at basically the same price you entered in an hour ago.
Trader28 has a 10 minute time stop built into his Simple Profitable Method.
When you're in a trade and price enters a consolidation (as at midday), you should immediately exit. Does not apply, of course, after a big run, which is just a pause to shakeout weak hands.
useful information in this post
'you have no business entering a trade in a consolidation zone'
one of the most important points for intraday traders.
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