Thanks for your reply, GR. When you say, "if you're even 1/16 wrong take your loss", do you mean if the immediate direction after your buy is down, do you then immediately sell?
Last week, I was trading MU in advance of the earnings. Long going into earnings announcement day, then shorted mid-afternoon in advance of the earnings when MU trading was flat or down. It was a lucky call, but that's all -- largely intuitive.
I need a better system. I've had luck with day trading, less with buy and hold -- especially with technology shares. Short term shorting has worked pretty well. But, with all these trading activities, my weakest area is in controlling losses once a stock turns down. For example, a stock I have bought into will start to turn down, and I find myself holding on until it corrects. Sometimes it does quickly correct, and I'll exit for a profit. But other times, the stock keeps sinking, and I find myself holding longer, waiting for the stock to turn up.
So, to repeat, what is your system as a day trader? Do you get out immediately if the next trades are down right after you buy in? Do you wait instead, watching the tape, and looking for a pattern in the trading to guide you? Or are you simply intuitive?
Since you trade frequently, I'd be interested in your reply, and in the replies of any other traders (not investors) who have dealt with this trading problem.. Thanks.
|
