Direction is everything.

[scose-no-doubt]

As Howard Cohodas would say, you guys are in "violent agreement".

Boring thread, everyone agreeing with each other, no lulz .. good stuff tho, but as we know, this is usually not allowed to last on t2w

barjon will be in to cull it soon and then we'll get a few posts from a newb about firm "x" an it's brilliant services

 

[Dinos]

The only way to make money is to be sure that the market direction is correct and, if it isn't, to reverse it ASAP or, failing that, at least, to be out of the market.

For me anyway, I only trade with the trend, safest must reliable option, no "guessing", or "expecting" or "anticipating" etc etc. Wait for the direction to be confirmed and jump on board, and for me, I get off before it reaches its destination, because I don't where that is, but my set up has enabled me to know, when x & x happens, I can get an entry and a move that will give me a minimum % move a certain % of the time.

Always with the trend, never greedy, quick to exit losses etc etc.

Theres always a debate "what the trend" is, and I suppose its how you determine it and its down to you to identify and feel comfortable with it.

 

[meanreversion]

I used to scale out, really for the reasons that you give. But I kept detailed records and compared scaling out to exiting in one go. The difference was huge.

I think scaling out was a psychological comfort blanket for me, and it detracted from overall profits, so I don't do it any more (not saying that it's wrong).

I do think it's a good idea to keep proper records and make the decision based on evidence rather than feelings or assumptions though.

This thread has far too much useful information from experienced traders, close it down immediately.

 

[DionysusToast]

I used to scale out, really for the reasons that you give. But I kept detailed records and compared scaling out to exiting in one go. The difference was huge.

I think scaling out was a psychological comfort blanket for me, and it detracted from overall profits, so I don't do it any more (not saying that it's wrong).

I do think it's a good idea to keep proper records and make the decision based on evidence rather than feelings or assumptions though.

Well - for me, my journal tells me something different...

BUT

If your journal tells you something different from mine, then you are absolutely right...

In fact, we both are.

To summarise.
1) Scaling out will increase your profits.
2) Scaling out will decrease your profits.

There is nothing at all wrong with the above 2 sentences.

 

[DionysusToast]

This thread has far too much useful information from experienced traders, close it down immediately.

Fear not, it will be ignored anyway as it doesn't contain a shortcut to a risk free holy grail with bells on.

 

[Badass Futures]

This thread has far too much useful information from experienced traders, close it down immediately.

LOL

I just started thinking for example:

I trade intraday, a typical move might be X pts or pips, call it 100, for sake of argument. You get a good move in your favour, say 30, price starts to retrace, or it gets to an area of S/R etc. You want to secure some profit, so you sell half for sake of argument.

Now you've only got half of your position on, price just has to move so much further to make much impact in terms of good profits.

Like I say, definitely not saying it's wrong, just depends on your style and what works. And yes, if you need to take some off the table to feel comfortable, that can actually be a legitimate reason for doing so.

My research told me it wasn't helping - I wasn't doing it for a legitimate reason. But equally, somebody could have a method whose success depends upon them securing some profit,for example, and leaving the rest to run with a stop at or near break even.

 

[Splitlink]

For me anyway, I only trade with the trend, safest must reliable option, no "guessing", or "expecting" or "anticipating" etc etc. Wait for the direction to be confirmed and jump on board, and for me, I get off before it reaches its destination, because I don't where that is, but my set up has enabled me to know, when x & x happens, I can get an entry and a move that will give me a minimum % move a certain % of the time.

Always with the trend, never greedy, quick to exit losses etc etc.

Theres always a debate "what the trend" is, and I suppose its how you determine it and its down to you to identify and feel comfortable with it.

It's the only safe way to do it, yet so many try to get the tops and bottoms. It is so difficult to do that but they keep coming back for more.

 

[meanreversion]

It's the only safe way to do it, yet so many try to get the tops and bottoms. It is so difficult to do that but they keep coming back for more.

Too many bottom pickers on this forum.

 

[HowardCohodas]

Too many bottom pickers on this forum.

Kind of the way it is in the population of traders in general, isn't it?

 

[Prawnsandwich]

I used to scale out, really for the reasons that you give. But I kept detailed records and compared scaling out to exiting in one go. The difference was huge.

I think scaling out was a psychological comfort blanket for me, and it detracted from overall profits, so I don't do it any more (not saying that it's wrong).

I do think it's a good idea to keep proper records and make the decision based on evidence rather than feelings or assumptions though.

Agree with the above, would even go further and say that you should be looking to add to the position as it moves in your favour, provided its done correctly.....

Why scale out if there is no good reason to do so ? Fair enough if price has reached an important level, or you perceive some weakness, but in the absence of some reason to scale out you are reducing your return on the trade significantly...

 

[Prawnsandwich]

Sh1t, you know it hermano. JL does it 20%, 20%, 20%, then 40%. Fool take his full f***in' line in one hit? His a$$ must be f***in' crazy.

You pyramid that sh1t. Like you say, "it move in yo favour". Let yo sh1t show you a profit fore you put more sheets down. Market shows you green fore you give it more green, e verdad hermano?

But mira: how many motherf***ers can get even this basic sh1t right? A position send them some benjamins, they sell it. A trade reach into they pockets, take out they roll and strip some off it, they hang on to that sh1t like it's they f***in' balls.

Basic sh1t, but thas the foundation a tradin'.

Shi111111111111111111t..........

I think I agree......some would even say that if your starting position is causing you discomfort when it moves in your favour, then it is too big in the first instance....ie start off comfortably small and then add as it goes it your favour.....that way if it goes wrong early, you minimise losses, but if it does what you want it to do, then add and maximise gains......

But then again its horses for courses.......each to their own. Yo Yo

 

[barjon]

Agree with the above, would even go further and say that you should be looking to add to the position as it moves in your favour, provided its done correctly.....

Why scale out if there is no good reason to do so ? Fair enough if price has reached an important level, or you perceive some weakness, but in the absence of some reason to scale out you are reducing your return on the trade significantly...

True, but I know my trades have a high probability of making 1:1 (with costs covered also) with only about half of those going on to greater things. So I take half off there.

The maths tells me I'd be better leaving it all on and taking more losses as the cost for greater gains. Trouble is I hate losses, despite 30 years of trying to think "correctly" about them, so I prefer to take smaller gains overall to avoid the angst. Mind you, I'm not trying to do it for a living

good trading

jon

 

[HowardCohodas]

The maths tells me I'd be better leaving it all on and taking more losses as the cost for greater gains. Trouble is I hate losses, despite 30 years of trying to think "correctly" about them, so I prefer to take smaller gains overall to avoid the angst. Mind you, I'm not trying to do it for a living

You, the trader, are a key component of your trading system. I don't believe that you can be successful unless you are operating within your comfort zone. Leaving some money on the table with some small regrets is better than leaving it all on the table with its really ugly consequences.

 

[DionysusToast]

LOL

I just started thinking for example:

I trade intraday, a typical move might be X pts or pips, call it 100, for sake of argument. You get a good move in your favour, say 30, price starts to retrace, or it gets to an area of S/R etc. You want to secure some profit, so you sell half for sake of argument.

Now you've only got half of your position on, price just has to move so much further to make much impact in terms of good profits.

Like I say, definitely not saying it's wrong, just depends on your style and what works. And yes, if you need to take some off the table to feel comfortable, that can actually be a legitimate reason for doing so.

My research told me it wasn't helping - I wasn't doing it for a legitimate reason. But equally, somebody could have a method whose success depends upon them securing some profit,for example, and leaving the rest to run with a stop at or near break even.

I scale out as I hit targets, not when it starts to move against me.

Whatever gets you through the night.
It's alright. It's alright.

We are in violet agreement.

 

[barjon]

er, it's me with the brush out again - sorry guys

 

[Liquid validity]

For me anyway, I only trade with the trend, safest must reliable option, no "guessing", or "expecting" or "anticipating" etc etc. Wait for the direction to be confirmed and jump on board, and for me, I get off before it reaches its destination, because I don't where that is, but my set up has enabled me to know, when x & x happens, I can get an entry and a move that will give me a minimum % move a certain % of the time.

Always with the trend, never greedy, quick to exit losses etc etc.

Theres always a debate "what the trend" is, and I suppose its how you determine it and its down to you to identify and feel comfortable with it.

Completely agree, good post

 

[timsk]

Knock me down with a feather, it's Tony!
How are you doing Tony and where have you been - if you don't mind me asking?

 

[iota]

Pfft, personally I rock a three instrument inversely correlated, parabolic paradigm quad-hedged arbitrage entry strategy and then make damn good use of 276 different indicators each with thier own dedicated 30" LCD monitor for my exit strategy.

I'm pulling at least 10,000 pips per day. And that's a bad day, muthaphuqa.

This me, dressing down.

 

[timsk]

This me, dressing down.

. . . and who's the odd looking furry creature with his arm around you?

 

[HowardCohodas]

276 different indicators each with thier own dedicated 30" LCD monitor for my exit strategy.

I'm pulling at least 10,000 pips per day. And that's a bad day, muthaphuqa.

And blow it all on the electric bill.