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Old 05-21-2007, 03:58 PM
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NihabaAshi NihabaAshi is offline
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Re: What is your strategy when a trade goes against you

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You enter an intraday trade long, and the trade immediately goes against you.
What do you do? Here are several possibilities:

1)You exit the trade at your preset stop and wait for a new entry
2)When the price action hits a support point, scale in
3)When the price action drops below a support point, reverse the trade and increase size.
4)exit on the close of the day and take a loss whatever that is.
5)exit when my risk tolerance is hit.

There may be other options.
Let's here from you and tell us what you would do.
I'm a strong believer to map out the trader prior to entry.

Anyways, my contingency plan involves #1, #2 and #3 depending upon the price action at the time of the trade.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

"Volatility analysis is a doorway to consistent profits."

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