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Hi all again!
I was curious to find out about what traders usually do in the following
case. If question1 dealt with loss management, question2 deals with
profit management:
Again, I hope as many as possible among you will respond, and I'll post
the results over the week end:
To respond, please hit "respond to message" and answer "option3" or
"option4" in the text body. That's all you need to do. Thank you in
advance for your participation
Question is:
You regularly trade futures, by entering on breakouts in what you
define as being the direction of the trend. When trades prove profitable
you pyramid systematically, effectively doubling initial size.
You trade 50 times a year on average, and your average trade is about
$4.200 in profits. You are currently in a
short trade in yen, sitting on 6 pyramided contracts with over $14.000
in unrealized profits at yesterday's close. However it appears the BOJ
and the Fed could lead a joint action to reverse course and this is
currently the main topic among currency traders. .
You are facing the following alternative, which one do you chose?
Option3: Take immediate profit of $14.000, and wait for next setup to
happen.
Option4: Hang on to the position, knowing you have 25% chances the
intervention does take place and the market shoots up to reduce your
profits down to $6.000 only. If they don't, you will collect $6.000
more in profits.
Pick your choice...
Gwenn
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