|
PureBytes Links
Trading Reference Links
|
> > Sometimes I like to stop and reverse. I can't count how many times I
would
> > have made back everything I'd lost plus a ton more if I had a
consistent
> > stop and reverse policy. How do you feel about that? Have any of you
> > incorporated this into your methods?
>
Tim Morge wrote:
> If you have the trading ability to recognize a 'failure' of a signal
> or trend and then reverse and go the other way, I think it is often a
> very profitable trade. When you do this, you often reverse before many
> of the other traders have hit their own stops and/or done their own
> stop and reverse, thus carrying your new position on to nice profits,
> often above and beyond the loss you had from the original trade. So,
> yes, I do reverse my position when I think it is a 'failure' of a
> trend breakout, etc.
Tim:
I couldn't agree more with the tactic of stopping and reversing position.
At one time I thought (probably through arrogance) that since I spent so
much time analyzing a trade to put on in a given direction...HOW in the
world could I justify reversing on a moment's notice?
It seemed so arbitrary to me. However, over time I see it would have worked
quite well. After all, I too, see alot of the same stuff other traders
see...and when I'm wrong and surprised, probably others are too.
A person who can reverse position (assuming he isn't a novice and doesn't
know any better) obviously has his ego in check and is humble enough not
to argue. I consider it a professional technique that few can pull off on a
consistant basis...including me.
BTW - GREAT commentary from many on this list - Let's keep it up!
Tom Cathey
|