Posted by billrosen on 15th of May 2009 at 10:07 am
Michael agreed, if day trading, using trendlines as stops on a 3
or 5 minute chart would give a stop much tighter than 3-5%, I was
referring to a swing trade with those stops, point I never take a
loss more than 3-5% on any one position.
bill -- ok. If you're never giving a swing trade more than
3-5%, my question is, what is that based on? Where does 3-5%
come from? If its not arbitrary, then it has to be some
reflection of position size vs account size that gives you those
percentages, and then waiting only for setups that allow those
percentage stops. Which is a good discipline. I'm just
wondering where those percentages come from?
Posted by billrosen on 15th of May 2009 at 10:26 am
the max 5% loss rule is for me personally, if you lose 5% then
you have to make 10% to get back to get to even and in this market
the last number of year, techincal trading is a lot harder now and
often times sensible execution is not respected as we have seen
over and over again with this market. I am a longtime reader of IBD
and they have the 8% rule, same philospohy, I like to let my
winners run after I take half off after 10% gains and raise my stop
to entry, so I am OK getting stopped out maybe more than I should,
it is just what I do, certainly not saying it is right for
everyone.
Posted by fixdgear on 15th of May 2009 at 10:12 am
SO ON A 1.20 OPTION YOUR STOP IS 1.15?....thats doesnt seem
reasonable if you are trading options....it only seems reasonable
if you are trading $60 stocks.
every trade needs to have some room otherwise you continually
get stopped out and get whip sawed too easily.
have a good w/e
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or maybe much closer stops
Posted by Michael on 15th of May 2009 at 09:50 am
or maybe much closer stops on daytrades..............
Michael agreed, if day trading,
Posted by billrosen on 15th of May 2009 at 10:07 am
Michael agreed, if day trading, using trendlines as stops on a 3 or 5 minute chart would give a stop much tighter than 3-5%, I was referring to a swing trade with those stops, point I never take a loss more than 3-5% on any one position.
bill -- ok. If you're
Posted by Michael on 15th of May 2009 at 10:16 am
bill -- ok. If you're never giving a swing trade more than 3-5%, my question is, what is that based on? Where does 3-5% come from? If its not arbitrary, then it has to be some reflection of position size vs account size that gives you those percentages, and then waiting only for setups that allow those percentage stops. Which is a good discipline. I'm just wondering where those percentages come from?
the max 5% loss rule
Posted by billrosen on 15th of May 2009 at 10:26 am
the max 5% loss rule is for me personally, if you lose 5% then you have to make 10% to get back to get to even and in this market the last number of year, techincal trading is a lot harder now and often times sensible execution is not respected as we have seen over and over again with this market. I am a longtime reader of IBD and they have the 8% rule, same philospohy, I like to let my winners run after I take half off after 10% gains and raise my stop to entry, so I am OK getting stopped out maybe more than I should, it is just what I do, certainly not saying it is right for everyone.
ok, thanks Bill.
Posted by Michael on 15th of May 2009 at 10:32 am
ok, thanks Bill.
STOP
Posted by fixdgear on 15th of May 2009 at 10:12 am
SO ON A 1.20 OPTION YOUR STOP IS 1.15?....thats doesnt seem reasonable if you are trading options....it only seems reasonable if you are trading $60 stocks.
every trade needs to have some room otherwise you continually get stopped out and get whip sawed too easily.
have a good w/e