Marlin, ditto! Every so often AFTER a trader has executes the iniating position, I might quisitively? ask , 'what are shooting for, whats your stop? " After a few brief moments, they might mumble something like, 'i just want to make a couple bucks and not get killed'.
This brings a few things to mind....key phrase bernie taught me, kind crude but accurate...don't eat like a bird and shit like an elephant...that is dont realize gains of 1/4s and 3/8 and not have the disciplines to keep losses to about the same...too many traders, make consistent 1/4s and 1/2 to piss it all away on multipoint losses due to some diaster da jour.
I personally like keeping my stops at 5/16 below the bid when I get it. Lets say I buy the stock, when its 10 x 10 1/4 at 10 1/8. .. I will set a stop for 9 11/16 this gives me the 10 bid, 9 15/16, 9 78 13/16 and 3/4 bid to chew through.......five bids dropping is all i really would want to risk when day trading.
**KEY NOTE** I would personally consider my forte more position trading, seeing more broad movements over periods of trading sessions. I do a fair amount of daytrading, a couple tickets per day but since I am heading the trading desk, I cant lock in and focus on day trading all day for my own account.
-Regards,
Steve@yamner.com |
