Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Patrick Slevin who wrote (4394)	9/22/1998 9:22:00 AM
From: SE	Read Replies (2) \| Respond to of 44573

The way you are playing this today almost makes me think you have become a position type trader (within the day trading definition). I think of it in terms of this. Kinda like yesterday for me. I shorted in the 19 area and held. Sorta forgot about it. However, I could not just leave it and when I came back to it and saw I had 5 or 6 points, I took it. That is as close to a position trade as I can get and feel comfortable. I have noticed the last couple of weeks my exit strategy on losers is softening and I need to tighten that up again. I think I shall go to a set point amount. I tried to use a simple "I will exit if the market looks like it is going against me." Worked great for four or five weeks, but lately I am not following my own rule, so I need to tighten it up. It has not mattered in the sense that I have been able to get the points back, but when I do this for real I cannot afford that luxury or it will be a short trip. I think perhaps one of the keys of staying power in this game is to recognize your potential "faults" and then make sure you stay on top of them and devise rules to eliminate them as best you can. The false sense of hope and believing I am correct on each trade is something I have to adjust to and devise rules to overcome....again. I have read that you should not risk more than anywhere from 2% to 4% of capital on a trade. I think I shall define it in terms of points....something like 2 points. If my entry is poor enough that the market goes 2 points against me, I need a better entry strategy and must exit and look for a better entry/trade. I think 2 points is more than sufficient. I believe I should call the entry better than that. How do you define your exit points? Any thoughts? -Scott