use of BreakEven exits

Discussion in 'Trading' started by traderkay, Feb 24, 2003.

  1. Tea

    Tea

    Your stop should be placed near something logical like trailing support/resistance.

    Placing a stop at YOUR breakeven point is just vanity (ego protection).

    If your trailing stop gets taken out and you lose a small amount instead of breaking even - who cares?

    It doesn't matter how many wins or losses you score - its how your net profits grow over time. Green is king!
     
    #11     Feb 26, 2003
    SimpleMeLike likes this.
  2. I log potential stops in a trading log. I C&R periodically according to the market pace.

    To connect my stop log list to the pace I offset by a fixed number of entries. I stay tigher in faster paced markets.

    when my logging fails to produce new potential stops I know I am near the end of a trend for that pace (fractal I am watching), so I prepare to wxit on the high side of the trend and go out at the max values for that trend.

    One case of this approach is the wash trade exit. If i enter on a trade, for example a bracket entry where there is a failure to BO.

    I fairly promptly see that I need to exit the non trend that is forming. This is where a wash trade is handy. I exit at market because I want to sideline as my primary goal. Often this turns out to be wash trade +/-.

    It always dooes happen in the course of logging that my entry value makes the list as part of the formation analysis and so on.
     
    #12     Feb 26, 2003