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Strategies & Market Trends : The Player's Club -- Ignore unavailable to you. Want to Upgrade?

To: JDinBaltimore who wrote (5476)	2/9/2000 11:18:00 AM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 11513

>>The question is how long does it take to play itself out. If you jump on the wrong side of a trade, how long are you willing to let the trade run against you? << John, That's a wonderful question... I think your question hits the nail right squarely on the head as far as proper money management goes... in my thinking, a trader should know where he would be wrong even before he ever enters the trade... a sound exit strategy is more important than an entrance strategy and should be deliberately considered before any money is ever put on the table.. that's part of the trade itself, knowing when to fold... the trader should have some expectation about where he thinks the market is going and should leave some elbow room for the market to work... but, he should also know well in advance where the market should not be going if his trade is going to be right... and that's where he should exit the trade... anyone can enter a trade, having an intelligent exit strategy prior to entering that trade is the key to proper and safe money management..... My Best Regards... GZ

To: JDinBaltimore who wrote (5476)	2/9/2000 11:30:00 AM
From: Soumen Barua	Read Replies (1) \| Respond to of 11513

how long are you willing to let the trade run against you? At least one month. My current strategy is to make or break, meaning either I will break the trade or it will break me. <ggg> Regards, S

To: JDinBaltimore who wrote (5476)	2/9/2000 12:36:00 PM
From: Chip McVickar	Respond to of 11513

John, Yup, SI is a wonderful environment. There are lots of good questions in your post... Question: Are these markets chaotic and random or are they quantifiable and if so How? Any chart tells us basically 3 things: 1. Price at which buyers and sellers took positions 2. Time at which they did it 3. The psychology apparent at both those times.... The fear and Greed which is present. Then there is money management, control of risk with trades going against your position. These markets are not here for the small trader......the pits see stops and constantly run them down. We are krill to the large accounts. Stops are extremely important to all but the largest traders in any one day.... How one sets them is a part of money management and skill at reading charts and using indicators. But stops will eat away at your account if the percentage of trades are false. They are NOT an answer. >>index has swung 15-20 points against you<< I just got out of a trade that went against me losing 14 points. That would be about the maximum drawdown amount for any one trade that I would enter in Live Trading. It has something to do with willing to give up 15 points in order to make 15 points. Stops are a big problem and there's a lot of written material on there use. These two threads might be of interest if you've not already discovered them. Message 12792621 Subject 18350 My Best, Chip