trade date: 5/8/11 vehicle: common stock direction: long A) entry price @ â¬88.5 B) stop price @ 61 c) risk on trade: â¬5000 D) position: C / (A-B): 180 shares E) committed: (A*D) = â¬15.930 F) first exit 120 shares @ â¬107 G) second exit 60 shares @ â¬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 (â¬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.
82 views.. anyone? Resources and links to other websites regarding expectancy / trade management and position sizing would be highly appreciated. Thanks in advance.
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. Cheers.
=============== 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
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. Cheers.