tips / input on managing this position

Discussion in 'Risk Management' started by c.chugani, Aug 6, 2011.

  1. trade date: 5/8/11

    vehicle: common stock

    direction: long

    A) entry price @ €88.5

    B) stop price @ 61

    c) risk on trade: €5000

    D) position: C / (A-B): 180 shares

    E) committed: (A*D) = €15.930

    F) first exit 120 shares @ €107

    G) second exit 60 shares @ €116

    My questions are:

    what would you recommend to improve the expectancy of this trade?

    Is scaling out worth the lesser potential profits?

    If stock hits first exit price (€107), would you bring up the stop level and risk being stopped out before the stock continues in your direction?

    How would you improve the risk / reward ratio of this trade?

    Thanks for your input.
  2. 82 views.. anyone?

    Resources and links to other websites regarding expectancy / trade management and position sizing would be highly appreciated.

    Thanks in advance.
  3. I'd like to take a look on my own charts. What stock are you holding?
  4. Trades on the Spanish Exchange.

    Ticker: LYXIB.
  5. noone3


    Have you tried using a trailing stop?
  6. I have had cases over backtesting period where underlying has decreased 30%+ from position high and later gone to resume the trend to surpass that high.

    In the case of using the trail stop and it getting hit, at what level do I reenter when price comes back and resumes the original trend?

    I ask this because the reentry price level will always be higher than my initial entry price level.

  7. ===============

    Senior CC, nice English writing.
    If thats a Spanish ETF for banks, Citigroup Bank/sector is bear/down trend ALSO ;
    sell it as soon a possible .The Spanish Short banking ETF has done much better, past year...

    If that info above is not correct, sorry Senior. IF it follows SPY[nyse, good benchmark], sell based on your descretion & 20 dma,50 day moving average.

    If its a gold stock,gold ETF, assuming the monthly parabolic stop & reverse does not say sell, i tend to scale out of a trend,LATE /very late. .Unless trend an excellant price/volume trend , in most every way trend; sell sooner with discretion.

    If thats a silver stock/ETF ;
    sell as soon as possible. So really it depends on what sector that's in..Thats wisdom
  8. It tracks the Main Spanish Index (IBEX-35).

    I've not been stopped out yet due to the wide stop.

    However, taking the other side of the trade would have been the right way to proceed.