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I suggest keeping your stops as you would normally set
them. Mental stops can't be run by the floor but you have to be
at your screen to use them.
The floor will shoot for the stops and many times is
successful in running them. If you have set a "disaster" stop
and it is run, then you will have a small disaster.
I prefer to keep fairly close stops and re-enter the trade
if necessary.
Frank Columbus, Ohio
swp wrote:
>
> John -
>
> I think it really depends on how you trade. I am more of an analyst than
> a trader, but I have had at least some moderate success trading. First
> of all, unless you are super disciplined I'd always have a stop. This
> helps prevent "hoping" the market comes back. You might put it fairly
> far away, as a disaster avoidance measure (such as being short stocks
> and the Fed issues a surprise rate cut), but having something to protect
> you makes sense.
>
> The think that I have found very helpful though is sort of a
> combinantion of POP's rules (Phantom of the Pits,
> http://www.futuresmag.com/library/phantom/phantom.html ) and what Mark
> Douglas talks about. That is that if you enter a trade, you have an
> expectation of where the trade is going. Assume you are wrong until the
> market proves you right. If the idea is that bonds will rally sharply
> and quickly, then if they do not, unless the market tells you they will
> grind higher, you should get out. POP says the market must prove you
> correct,say within four or so bars from where you put on the trade
> relevant to the timeframe you are trading while Mark Douglas basically
> suggests that you must always be open to changing info from the market.
> IF YOU PUT ON A TRADE AND THE MARKET SAYS U R WRONG, DO NOT WAIT FOR
> YOUR STOP TO BE HIT, JUST GET OUT! That has saved me lots of money, much
> more than if I would have stayed in these trades for the times that the
> market did go my way.
>
> By the way, I find Elliott Wave very useful for this sort of thinking.
> This is because each wave has a certain expected characteristic and if
> that characteristic does not appear, then there is a good chance I am
> wrong.
> --
> Steven W. Poser, President
> Poser Global Market Strategies Inc.
> http://www.poserglobal.com
>
> Email: swp@xxxxxxxxxxxxxxx
>
> JMAXBragg@xxxxxxx wrote:
> >
> > I would like to get some feedback as to when traders should exit a trade gone
> > bad in day trading, swing trading and long term investing. Your concepts and
> > the reasoning for it would be appreciated.
> >
> > Thank you,
> >
> > john
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