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I've been having difficulties lately on defining a better (for me) exit
strategy. I don't use systems that give me a clear exit signal such as:
Entry when 2 MA's cross and Exit when they cross the other way. My systems
are reasonably good at getting me in at a low risk entry but then what?? I
have been using trailing stops. They seem to get hit just before a turn
back in my direction. Always leaving something on the table.
It just occured to me that part of the problem may be a lack of a
goal/purpose for the method.
What are the goals of a Long Term Trade?
What are the goals of a Position Trade?
What are the goals of a Short Term Trade?
The Goals have been to "make money". "Make a living". "Get the Most out of
a trade"-whatever that means.
If the goals/purposes are more clearly defined however then an exit
strategy can be better defined to acheive the goal. The psycological
problem of leaving money on the table goes away because you've acheived
your goal.
Any thoughts on this?
What are reasonable goals to set for Long, Position and Short Term Trading?
BTW: I do stocks and I don't daytrade.
I'll also post this at http://www.realtraders.com/tradingpsychology
Seems like no one uses the web based sites.
Greg
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