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To: UnBelievable who wrote (15788)	9/3/2000 6:23:10 PM
From: AllansAlias	Read Replies (1) \| Respond to of 436258

UB, I'm primarily a TA type, so I know when to cover -- it's easy for me: If the trade moves against me I get out. Now, I know what you are asking. Well I decide how much is "against me" rather arbitrarily, but it is no more than a few percent. I generally know where it is when the trdde is made and I do not argue with myself when that loss level is hit. Since MM's and pit traders know I am out here, they will often head-fake a move. This can lead to whipsaws, but they do not bother me. I love the first loss; it's always so small. :) I find that I can reduce the chance of whipsaw by being less eager. For example, if a pattern breaks down, price will often return to near the point of the break and then resume the breakout direction. By jumping on board only at this time I reduce my chance of whipsaw. Sometimes I miss a big move and that is the tradeoff. In general I would have to restate that I do not mind whipsaws. A decent move more than accounts for 4 or 5 whips. I try to choose trades that have low risk. For me, a low risk trade is one where I can know I am wrong almost immediately. I say, shoot losers in the face and ask questions later. Corollary: Don't find reasons to exit winners. (A more common problem for me. -g)