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Old 02-24-2007, 12:51 PM
wsam29 wsam29 is offline
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Re: Arts of stop placment and profit target

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In the forum, I have notice some threads discuss the management of stop loss and profit target. I still want to strat a thread on this issue and hope to hear the advice of the seasoned traders. I am still trading 1 contract on the YM and trade mostly on the small time frame

My current stop placement is 10-12 points. I rarely change it unless a support or ressitacne is 1-2 points around. In such a case, I will place a 14points stop placment. Neve adjust it

When I have 8 points gain I will adjust my breakeven to +2 to lock in my profit. I do not trail.

My profit target is 12 points but will adjust according to the market condition to only widen the target for another 10 points. e.g 22 points, 32 points

My struggle with this setup is that there are times I will be knock out prematurely for only 2 points (adjust to 2 when a gain of 8) while the market can offer me 12 points and sometime even more 22 points or 32 points. It piss me off!
But I am glad at other times because I captured 2 points instead of losing 10 points with the setup.

Is there a better setup to refine my current strategy?
The problem is not your trade management, its your acceptance to being taken out and the market running in your direction. there is no right or wrong to your management style, just what is between your head and the way you think.

expect and accept trades will have that outcome.

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