What is the correct answer for a trader?

You have an intraday gain of 8% on your book at 11:00 am.

Rather than cash in, you suspect a bullish fever on the day, and decide to risk riding your profits higher.

The market takes a sharp and nasty sudden reversal, of such a magnitude that it reverses your convictions.

You close out all of your positions at 12:15 pm, rather than risk further market erosion, up 2.2%.

After you close your positions, the market reverses yet again, and closes at a level that would have kept you up roughly 8% for the day had you stayed long.

Have you:

a) Booked a profit of 2.2%?

or

b) Lost 5.8%?

 

I would say #$%%^ f*cking @#$$%!

I say it often.

 

I Say:

c) learned an important lesson about discretionary trading...


Keywords.. you SUSPECT Bullish Fever. I have never known a fever to turn out good. Heck in Jungle Fever didnt Denzel lose his family??? For some Tail. He had a Fever... LOL.... Suspicious people tend to end up on the short end of the stick...

 

Fever?

That reminds me of this:

 

There are people here who think this is a "loser" strategy, but how about scaling out? Sell 1/2, move the stop to BE.

Since you can't predict the future, scaling out lets you bank some profits, reduce risk and leaves that lottery ticket sitting out there just in case.

Of course, this isn't the "correct" answer, just another way to look at things.

 

Loved that song... and I hope this guy doesnt really run for president. LOL.

 

There are no answers, only more questions.

 

Why?

 

You booked a profit of 2.2% and then you made a mental note to trail tighter stops next time.

 

May be surprising to some, but that's one of the more interesting questions....

I believe it's because there always must be uncertainty about what to do. At any given price buyers and sellers act with conviction, yet always one of them is wrong.