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Gary:
I don't think there is a dilemma , you have found your way of trading that works !
How profitable is your buddy?
I do similar trading and I always have to fight this " leaving money on the table" demon.
The only dilemma is fighting your on personality.
Marcelo
Neal Hughes wrote:
> At 01:56 PM 1/12/99 -0600, Gary Kramer wrote:
> >>>>
>
> I have been day trading Spoos for about 5.5 months now and have a dilemma. When I first started out, I scalped the market and made 1-2 points per trade and was making money consistently. I was using retracements as the basis for my trades. Everything I read and everyone I listened to suggested that in order to succeed, i needed to let profits run. I noticed that I left a lot on the table so I investigated a whole bunch of other systems. Nonetheless, even though the systems worked, they did not work for me. I just couldnt let my profits run and I wasnt good at implementing the strategies. My confidence soured and I reverted back to the scalping to get my equity and confidence back. Again, I tried other strategies and failed. I am back to scalping and feel real good about it. I have a friend who guarantees that I will fail if i scalp. I have looked back at hundreds of charts and recognize that based on my strategy of buying or selling pullbacks, the success rate is near 8!
0%
> with objectives of 1.5-2 points. The question is: can I make money? I have done so, am doing so now, but its bothering me that this buddy of mine insists that it cant be done.
> BTW, I always have a 2 point stop in!
>
> Any words of wisdom would be most appreciated!
>
> Thanks
>
> Gary Kramer
>
> <<<<
>
> Gary,
>
> First, if you're making a profit, keep doing it! Most people can't make a profit
> consistently, don't listen to them! Congratulations on beating the odds!
>
> Second, (I don't trade the S&P, but individual stocks), taking a profit is
> the best way for me. I use pre calculated profit objectives (most often),
> subject to price action of course (can be over-ridden by thrust or lack of).
> And don't care "how much I leave on the table". I can always initiate
> another trade to capture the rest of the move (trend).
>
> It depends on the trader's personality. Taking profits is great for
> your peace of mind and "job satisfaction". Having a profitable trade
> turn to a loser because of attempting to "let your profits run" consumes
> your emotional capital. Trying to exit with a trailing stop can
> increase your slippage because you are getting out after the trend,
> with all the other panicking traders etc..
>
> Hanging on to a trade without a profit objective is like trading without
> a framework (for me). It's more emotional, more risky, less calm/logical.
> Emotional trading is too risky for my liking.
>
> So there's nothing wrong with having an order in the market to take
> you out at a pre calculated profit objective. If the trend still looks good
> after you've exited, enter on the next retracement, make another profit.
> These are businessman's profits, there is no need to hope for the
> "big one".
>
> Just do what works for you.
>
> Best wishes,
> -Neal.
>
> -----------------
> Neal on the 'net.
> Trade well. Train hard.
> http://www.halcyon.com/neal/
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