How's the day going?

[JasonC2]

 

[rossored]

effective stop management almost always liquidates my positions for me.

 

[neil]

Beginners

hi Matt, you mean setting a limit order at time of opening the trade at the profit target? can limit orders be moved once placed like stops can?

I think your relative inexperience would benefit from the use of the "Search" facility above which answers many of your questions you are posting. And then............

Look under the "K.Lab" and "Traderpedia" links above for much more of the sort of information you are asking about.

Happy reading

 

[rossored]

hi Matt, you mean setting a limit order at time of opening the trade at the profit target? can limit orders be moved once placed like stops can?

Not like a profit limit, no - although typically limits can be moved once placed.

Why liquidate positions when you have made xyz? You may benefit to keep them running. Moving stops to areas of support/resistance (either on an intraday or daily/weekly basis) has always worked better for me than placing an artificial limit on my potential upside. That way, the market itself will take you out when your trade has run its course.

I do sometimes bracket orders, but it depends on the instrument, how long I expect the trade to last, my mood - all kinds of things.

Also, thats not to say that this method is best - its just one of the methods available, and everyone has their preference.

 

[sambinho]

closing out a good too trade early is almost as bad as making a losing trade IMO

Going to have to disagree with that (in a friendly way ).

It's not possible to nail exact tops/bottoms on a consistent basis - therefore it is unwise to attempt doing so, and you will never bust out by closing winning trades too early.

Indeed, I make a point of not 'hanging around' too long in a winning trade. Simply take what you consider to be a reasonable profit, and move on to the next trade that offers you favourable odds.