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I'd be interested in hearing how you set your exits and why you think that
you screw up.
FWIW, here's how I do it. I'm a position trader of Emini's. All my orders
are placed before the market is open. For me, this is important because I
cannot make good exit decisions while the market is open. If my system
signals a sell, I place a market order to sell. Immediately upon fill, I
place a stop loss order 15 points above the fill price. At the end of the
day if the trade has moved my way, I move the stop based on the close and
tightened it by two points. Each day that the trade is open, I tighten the
stop by two points. I tighten the stop for two reasons - to preserve as
much profit as I can and to minimize the loss on a trade that is doing
nothing. The 15 point stop is based on trading two contracts and looking
at the average daily volatility over the previous two weeks. Fortunately,
it also happens to correspond to the maximum amount that I'm willing to
lose on a trade under normal circumstances. The biggest problem that I
have to contend with is a choppy sideways market. My entry rules try to
accommodate that: if I get an entry signal, the market must be moving in
the direction of the signal; my indicator has extremes beyond which it
rarely goes so I have established bands beyond which I will not take the
trade; and finally, if I take two losses in a row, I stand aside until I
see a winning trade again. Although I pass on a winning trade, I also
pass on successive whipsaw trades.
Regards & good trading,
Mike
--
Aboard 35' Edel Cat "Moongate" in New Bern, NC
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> From: TheGonch at MediaKat <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>
> To: realtraders@xxxxxxxxxxxx
> Subject: Re: Coincidence or not, I prefer not to use it.
> Date: Wednesday, July 28, 1999 10:24 AM
>
> Of course both entries and exits are important.
>
> But if one is naturally good at only one of the two, the other will
> require a lot more focus and attention.
>
> I, for example, am bad at exits, so exits are more important to me; it's
> where I screw up.
>
> I think it is based on the individual's psychological makeup.
>
> Regards
> DanG
>
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