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Old 02-24-2007, 01:10 PM
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Re: Arts of stop placment and profit target

King - I think wsam has it for you. Either you have to accept this or change it. It really comes down to testing multiple stop movement setups and see what works best for you over time. Nothing is bullet proof.

Here's what I found. Either:
  1. Take trades going for a 'smaller' profit target with multiple trades
  2. Take trades looking to catch the bigger moves and a lower amount of trades
Now, once you decide on what type of trader you are, that can help dictate what type of stop movement you use. For example - if you decide that you want smaller profits but multiple trades, then you should be aggressive with your stop movement or simply exit at a predetermined profit target. Or you can be 'generous' with your stop looking to catch the bigger move.

I have found that it's very, very difficult to catch the bigger move and have an aggressive stop. The chance for a small retracement is just too strong, unless of course trading around econ news.

Just keep in mind that while I am sure you will get some good advice here, you have to test and prove to yourself what is best for you. Sorry to sound like a broken record, but I really believe in proving a strategy to yourself. We can provide guidance here, but until you are on board, it's going to have a hard time working.

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