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King, Stops should be placed in relation to price action (pivots) and not a fixed value... same is true for profits, price action should tell you when the move is over and not a pre fixed target... fixed targets its like spoiled kid that wants something (candy).... markets dont give some times what you want... market has a dynamic you want to simply follow... I here a lot here on TL about 10 12 points targets on YM.... thats some how pretty foolish, because some times you will get a 30 move and you leave money on the table... and some times market made a nice 8 point move and you didnt get it and waited to get mowed with - 10 -12.... price action is the best way you can manage a trade in terms of stop/trail.... if the market wants to give you a lot of profit he will give you, if he doesnt want to give you much profit... want give you... now never forget this : RRR = live or die.... cheers Walter |
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Now becareful there walterw
I wouldnt say 10-12 pt targets are foolish. Well... yes and no. Let me explain. King mentioned that he trades 1 contract. Now when I used to trade 1 contract my mentor recommended me to take 10-15pt targets. This to me makes perfect sense. You mentioned, "because
sometimes you will get a 30 move". Exactly.. only sometimes. For those who trade 2 or more contracts, taking 10-12pts is somewhat too small. I personally scale out half at +10 and try to hold my other half for 20-30+pts. I do this to eliminate risk completely... because I move my stop to b/e after exiting half.
King, trading 1 contract in my opinion is fairly difficult. I usually recommend new traders to start with 2 contracts because you can scale out and learn to ring the register. Maybe the ER (russell) provides a better opportunity for 1 lot traders? (because it moves) Brownsfan pretty much nailed it to the point. Maybe adjust your trade setups that can focus on larger moves instead of your 12 pt setups. Unlearn and learn.
