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sds - I trade multiple contracts, but simply to get the returns that I am looking for. With that being said, I used to do something like Tin illustrated for us here, but after a real hard look at arbitrary fixed profit levels, I am focusing my efforts on exiting based on 'what the market is telling you' vs. holding and hoping... I started a thread here in case you did not see it - http://www.traderslaboratory.com/for...dles-1480.html
I have found that having set profit levels out there is great when they are hit, but you really can 2nd guess yourself when they are almost hit. For example, I remember a trade that was last week or the week before on the YM. My profit target was at +20 based on the strategy being used at that time. It was a short and looked great! The move went exactly 19 points and not one more. My order was just sitting there - an MIT order actually. It just had to move one more point and I was out with a nice trade. Well, that one more point never happened... Talk about kicking yourself in the ass over that... |
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I am following the thread " Wide Range Bodies or 'big' candles " started by you. (very nice thread, thanks.)
I have read nearly all the posts those you had posted. Based on that what I feel
is that you have an exit strategy that is perfect for you.
The idea behind this thread is not to find the best position management
strategy, but to know the different position management strategies that traders are
applying (preferably with the type of trading style).
based on the style of trading and personal comfort, a person can
- Exit all of the positions at once.
- Exit partly and then with trail stop.
- Go on adding up position by keeping risk the same.
Again the entire thing depends on the person and his comfort level.
In my case,
I do not fear of holding the position overnight. Because I am risking the money
which I am comfortable to loose (which does not affect me financially and
psychologically).
Based on this statement, initially I used to trade single contract. Then I
started trading multiple contracts.
Brownsfan019, Read your example of +20 target.
Based on my psychology:
e.g. I am long at certain contract.
My feeling is, after +19 if market is telling (giving a clearcut signal) that it will no
may not go on in my favour, then I will liquidate half the position and move the stop to breakeven.
If any signs/patterns do not suggest the downmove, but still not moving in the direction of my favour, I will move the stop to breakeven.
What I want to see is the balance of fear and greed.
sds.