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

To: SE who wrote (13343)	1/22/1999 9:59:00 AM
From: Tom Trader	Read Replies (1) \| Respond to of 44573

Scott, I am looking to short this for a day-trade when/if we get a bounce. A thought for you on the use of a money management stop -- I noticed that you stated that you were almost stopped out yesterday. I think that you need to build in the volatility factor into where you place a stop. For example, yesterday we had a range of almost 30 points before the final sell-off in the last 30 minutes or so. It is not out of bound for a bounce of half that range to occur before the trend resumes. It is a question of drawing a distinction between how much give there should be as you protect profits vs the loss that you should prudently absorb. This is especially true when position trading -- it is a different thing when day-trading where Patrick taught me that one needs to be very wary of allowing a winning trade to turn into a loser. Not sure if I have been clear in terms of what I am trying to say.