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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (2308)	8/24/1998 11:26:00 AM
From: Nemer	Read Replies (2) \| Respond to of 44573

TT : ====> excellent point about not approaching day-trading as one does position trading--which I am prone to do. Far be it from me to attempt to instruct you ...... however, I would throw in this comment on the way that I've found satisfactory, but only as a comment, not as a lecture. This is just my method ----- I set a target at time of inception ..... both a profit and a loss point, and the 1 1/2 times that you use is compatible with mine.... the loss point is FIRM the profit point is "semi-movable", that is if the SPX is moving rapidly in the direction to make the position profitable, I might extend it a tad, but more often than not, I'll exit half position and move the stop to something like mid way between the inception price and the half position exit price. That stop is semi-movable, but only in the direction to make the trade more profitable...... I think this is somewhat of the same thing Pat does with the stop ( he'll correct me if I'm wrong about it) and I find that this works for me in day trading ....... This is written to the tread as somewhat of a clarification of what I do, and not as criticism of your method . Regards --- Nemer

To: Tom Trader who wrote (2308)	8/24/1998 12:45:00 PM
From: Patrick Slevin	Respond to of 44573

<had I moved my stop to say 70--the odds were that it would have been hit for sure.> Yes. I use a mental stop until I can place one that is marginally profitable, like the physical stop I had at 92 on the first trade. The stop out on the second one (for me) was mental and I would have "sent it in" at 86.20 as soon as the trade looked to have momentum that way. It was an unfortunate play, as it immediately bounced. So either way have it's detraction. My goal is simply to not lose money on most of my trades. I miss a lot of large moves that way unless it trends with me for a bit. When it does I give the stops more room. <my target is predicated on making about 1 1/2 times what I am willing to lose, if the trade goes my way.> The way I was taught is to find your "average" winner and your "average" loser. Try as hard as possible to reduce the "average" loser and if you are making more than your "average" winner who gives a damn where you stop out. In other words, even if your average winner is 1.50 points and you are ahead in a trade by 2.0 points you are still beating your number. This is just one point of view, of course. The guy who suggested it trades anywhere from 10 to 100 lots and his average is only 1.7 or thereabouts. But his % winners is around 70%. His average loser is about 2 points so he's doing pretty well with scalps. I don't know how many trades he puts on a day; I think he only does about three, tops.