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Old 05-16-2008, 08:50 AM
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Sledge Sledge is offline
Sledge is PDF: patient-disciplined-focused

 
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Re: Time Based Stops

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If I'm in a trade and the pending news is coming up, I usually time it to exit wherever it may stand. I have no hard rule on how much time up until the schedule news release. That part would depend on the price action, how much size I have and of course, how much or win/loss I'm incurring.
AMEN brother!

This is just my (and apparently Torero's trading style) some folks may say "Screw the news, let it whip and dip- it won't change the long term trend) They are correct. Alot of times I ride the news, other times, I bank $ It depends on the situation. If the news is arriving at a S&R level- DEFINATELY bank $, if the news is between one major S&R Zone and another- I let it ride!

If you are up $1000 bucks and the news is coming out right at an S&R level- BANG, Bank that Money and wait for amateur hour to be over- then re-assess and begin again! You may be able to get in again even lower on a long term bull trend and take that gap that it slapped down up higher. So in essence you are making $ on a section of the road you already travelled and are getting paid TWICE! Or you can watch it unfold, see that it is a trap, sell high and ride the short trade!

The news is the best time at an S&R level to trap the would be background trend traders into further positions- just before they turn the ship around and take your money!

Sledge

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