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Stewart Taylor wrote:
> >
> > All I know is this..... when I see a market move strongly in my favor (five
> > minute or daily or weekly) ... Im tellin ya ducky, Im gone like a goose.
>
> Amen to that.
>
> I have a short hand theory to large and rapid moves. They are like a
> rubber band, every time you have one these reactions (parabolic) you can
> expect a rapid reversal. If I happen to be on the right side of one of
> these moves, when I see the slightest indication that the move is
> slowing down, I exit.
>
> As for exits in just your normal type trade, that is when you get a
> signal to buy or sell and you take the position, I just like most of the
> traders on this list (well maybe not most) have to either use
> descreation to exit or have a target in mind. I happen to use a stop
> and reverse system, but because of the reverse feature of the system I
> give back what I consider to be too much profit. I have been working on
> developing an exit strategy for this system, but so far I haven't found
> anything that works to my satisfaction.
>
> The closest I have come to an acceptable exit plan, based on a very
> short time frame, is once the chart has given me what I think is a top
> or bottom I wait for a pullback that equates to the equivlant of the low
> or high of the previous three bars. Yes, there are times when that exit
> is too soon, but at least I have some profit.
>
> When the S&P was $500/point the moves used to be anywhere from 5 to 10
> points on a short term time frame. That all changed with the new
> $250/point. The moves were reduced down to 1.5 to 2.5 points with a
> small reversal. Now that the volatility has increased those moves have
> increased considerably and larger profits can be realized.
>
> Having said all of this, exits still remain a problem for me, espeically
> within a programmed system. I haven't been able to develop the exits
> that I want or that I feel comfortable with.
>
> Lamont Cranston
> "who knows what evil lurks"
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