when to take profit?

Discussion in 'Trading' started by dafishman, Jul 22, 2014.

  1. I will try and post some charts later or this weekend.

    Basically, I have been using a daily, a 1 min and a 5 min (rarely a 10) to enter in. I been playing news stocks, gappers, certain patterns like flags or wedges and I trade stocks that have solid volume so I can get in and out......

    I can get in quite easy, its getting out as I stated where I am having issues. I have tried taking X amount of profit, using %'s, etc.

    I know there is no guaranteed way but that is why I was asking what YOU did and maybe it can help me!
     
    #31     Jul 24, 2014
  2. maybe i misunderstood ...for instance if you bought in because of "support" then why wouldn't you get out at first "resistance" ...a resistance that was based on same/similar principle? or, whatever premise. when the reason for the trade is over, get out.
     
    #32     Jul 24, 2014
  3. No ... it's not at all like that. When you tie it to the size of the account rather than a profit goal on a trade it is not just different it is entirely different ... as in not even similar!!


     
    #33     Jul 24, 2014
  4. lotek771

    lotek771

    right, but it is similar in that you still need to decide when to get the account flat
     
    #34     Jul 24, 2014
  5. Thank you NoDoji, your time is valuable, method are sound and you are the Real deal! Thank you for helping me reinforce what I was taught is not bad, there are pattern we trade everyday.
     
    #35     Jul 25, 2014
  6. No ... you don't. Closing the trade is a necessary but not sufficient condition to making the account flat. You do not need to decide when to go flat in your account to close an individual trade. Except for someone trading on a shoestring the account, as a general rule, has little if anything, to do with closing an individual trade.

    Given that I think my views on this are clear, I'll leave this conversation behind.

     
    #36     Jul 25, 2014
  7. lotek771

    lotek771

    ok, have a good trip. My only reason for closing an individual trade is because it is a loser. And then I look for a better place to get back in, usually on the same side, but sometimes on the other side.

    Like I said, I never take a profit until the account takes out the old high. Then everything gets closed out, winners, losers and draws.

    And when I'm finally flat I take break, and when my mind and personal business have recovered, I start it all back up over again.
     
    #37     Jul 25, 2014
  8. If you go 3:1, your expected value will be pretty high, even if you are right only half the time.

    Or just rely on your "system" a.k.a witchcraft and take profits when you are in the money and you get a signal saying your fortune has come to an end or is coming to an end.
     
    #38     Jul 25, 2014
  9. lol - love this "a.k.a witchcraft and take profits when you are in the money and you get a signal saying your fortune has come to an end or is coming to an end."
     
    #39     Jul 25, 2014