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Old 03-27-2007, 09:30 AM
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Re: Position Management Strategies

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I will attest to trading a single car vs multiple cars. Basically, my story is such. I started day trading after realizing I wasnt the kind of guy that liked holding a position overnight. When I started, I said...I will trade 1 car until I felt comfortable, then trade 2.

That was about 6 months ago. Then, one of the board members (actually a few) taught me about the wonderful thing that is trading with multi-contracts. Money Management starts to become amazingly wonderful, and if I had done this from the get go...then I'd have saved a LOT of cash on losing positions.

This is how I do it right now. After 5 YM points, I cut one car off and move my stop to breakeven - 5. Now I'm in a scratch trade at the worst. Then, my other I will take off at +10 if the market conditions warrant that, or I will take it off at +15. Many of my ultimate 10 point losses in the past would have been avoided had I used this strategy.
Thanks TinGul,

If the position moves against you, do you exit out of it at once?
Cut the loses down and let the winners run. This is okay. But have you or anybody tried applying staggerred stop losses?

sds.

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