when to get out, when to add more

Discussion in 'Trading' started by fold, Jan 5, 2012.

  1. fold


    I have been day trading for a few months now and within the last two weeks have started to become consistently profitable. I aim at this moment is to make $200 a day for this week and next, the continuing until I am somewhere in the $500+ a day range. Consistency being the key for me.

    Sorry for the long intro but thought it would help everyone know where I am coming from. Started the day negative, went long JPM at 35.00, made a new high at 35.36 before it came back in to where I covered at 35.25. I was happy enough with the trade seeing how it helped me achieve my goal for the day. Looking at the chart now it is trading at 35.70.

    So my question is, how can I tell if it is just a pull back or a real reversal? Looking at it now it would have been a great place to double down and let it ride for the rest of the day (hindsight I know).

    I have been realizing that to get to the next level for me, without increasing size, I need to really know when to add more or when it is time to get out.

    Thanks a lot for the help, I really appreciate it.