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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Jay Lyons who wrote (541)	9/22/1998 10:07:00 AM
From: Thomas Sterner	Read Replies (1) \| Respond to of 43080

<<2. If the trade starts out negative, I'll give it 1 point to retrace before I exit.>> Jay, Good rules! My only comment is that I would determine a stop loss on percentage rather than points. I set my stops at 3% to 8% depending on the market and the particular stock. There is a big difference between 1 point on a $90 stock and a $10 stock. Tom

To: Jay Lyons who wrote (541)	9/22/1998 10:12:00 AM
From: LastShadow	Read Replies (4) \| Respond to of 43080

"There seems to be an unofficial rule #4 which goes something like...If it goes beyond 3 points go nuts, forget about exits and behave like you're at the races, cheering your horse on. " Uhhh...that's cool, but if you do that, is the corollary to scream and panic if it tanks? Perhaps its just that I don't take a whole lot of emotion into this, but I also believe the more disciplined and rigorous one's method, the less you will allow emotion to influence your trading. Intuition, yes, and certainly caution. But remember that someone is out there to pull the exit trigger, and its better to beat the crowd in most cases than trail it. Jay - your plays yesterday were great. Don't get too heavy into asking for advice on what one could have, should have, would have done. The more you do it, the more proficient you will become. The only thing I would offer is to consider using a % retracement rather than the 1 point drop. For stocks over $50 that means only 2%, and some of the sectors you follow swing much more wildly than that. lastshadow