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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Patrick Slevin who wrote (2281)	8/24/1998 11:09:00 AM
From: Tom Trader	Read Replies (2) of 44573

>>One thing I have not mentioned which I guess I have a bit of concern about, is what appears to be your reluctance to advance your stop loss as the trade works in your direction<< I think that you make a valid point--I don't usually advance my stops after taking a day trade postion. I have exited a position based on sense that it is the right thing to do--but otherwise I have a target and unless there is reason to change that target--I stay with it. >>Selling short at 68, for example, then watching it go 4 or 5 points lower and getting a 7 point loss<< Agree again--7 point was too much of a hit to take after it moved several points in my favor. My target was 57-58--and it did not get there--after I entered the trade. The other side of the coin is that on a day like yesterday, had I moved my stop to say 70--the odds were that it would have been hit for sure. Almost better to have exited with a small profit--and scalp. Having said this -- it still does not negate what you have said. When I take a day trade position, my target is predicated on making about 1 1/2 times what I am willing to lose, if the trade goes my way. So if I am right about 60% of the time in terms of being correctly positioned then I am in good shape. Is this a reasonable way to look at it?? >>If you had a short from 68 ...I think it was, it's late at this point, .. and it went down but rebounded then one tends to protect the trade.<< Well it was a very volatile session--and so it was tough to call what was going to happen from one moment to the next. Perhaps the smart thing would have been not to trade on a day like yesterday. >>Just a thought....don't wish to bum you out. No problem--I welcome the critique--and the suggestions. Feel free to suggest anything else that I should consider. I think that you make an excellent point about not approaching day-trading as one does position trading--which I am prone to do. I have been keeping a log of my day trades this week--with reasons for entry, exit and what worked and did not. This is part of my process for learning and assessing what works best. Like I said before, I am going to give day trading a fair shot--and if it does not work out, at least I'll know that it was not for want of trying.

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