Best Thread Potential setups

[Hotch]

True, his targets and R:R are crappy but just through discipline and MM he is profitable. That is something when so many who try this are not.

I prefer to think that my sucess is due to cahoonas the size of watermellons and the sheer genius of chatzy's coinflip function, pft discipline.

 

[omni]

Also the problem with a target is that the market may hit your target and keep going another 100points..

Why restrict that profit to just the same as stop?

What if it hits your target and then falls?
Is your trading "greedy"?

....just questions to ask yourself.

 

[Technically Fundamental]

What do you guys do if you are in a losing trade which hasn't hit your stop but you think it will turn around?

Also how do you decide on where to exit a trade when it's losing.

 

[foredog]

Like possibly limiting % of your losses at stop or protecting % of profits? :-S

Taking a profit.

Say you sell $3 gbpusd at 13900 stoploss at 13950, when (if) it reaches 13850 buy back $1 and then trail stoploss on other $2 to above the high of previous candles.

If it pops back up you've taken part profit so even if you hadn't moved stop then you'll still on lose $50 instead of the initial $150 if it keeps going down then your lock in a decent profit on the other $2

 

[omni]

Thanks for the input Omni

Can I ask what factors in you guys(?) decisions when planning an exit?

I'm still learning you see. I can usually call a trade and it will be profitable (without stops lol) even those sometimes go bad before turning around which reduces profitability.

You need tech analysis to pick a target? I hear people on here say tech is bullsh*t? :-S

I tried to ride the wave earlier (as usual) after a decent entry and everything turned aroud when the dow exploded... I kind of get lost when a trade goes bad. I know I need to put more thought into my stops (I'm not sure how because in my opinion R:R doesnt mean anything if you lose the trade :-|) but now I've been trying to use failing markets as indicators to where I might find a profitable short in/out trades e.g. dow drops possibly profit in shorting $/HKD etc

Is this a legitimate method of trading or am I barking up the worng tree and just doing too many trades per day?

All i am saying is that you need an exit plan before you put your buy plan into action.... whatever method it is..... as long as you have one. That's all i am really trying to get across..... you could use targets, technical levels, %, a risk/reward scenario, a time bar low trailing stop........ etc etc.... whatever suits your personality.

and please use a stop mr Aaronmalins, there is nothing more important than a get out clause.

 

[foredog]

What if it hits your target and then falls?
Is your trading "greedy"?

....just questions to ask yourself.

Not greedy just trying to not to restrict profitability.

I'd trail my stop soif it gets to the target i'd have a close stop so i might risk 10 ticks from target to see if the trades going to give an extra 100 from target.


Flexibility

 

[theroguetrader]

when your in profit by the same number of pips you risked - move the stop to B/E - then you get free ride on the MKT

Exit - (see post on risk / reward ratio) .... !!

 

[trader_dante]

I have tried a lot of different exits and the most profitable is trailing your stop above or below the candle that closes above or below the next pivot in the direction you took the trade.

This strategy serves two very good purposes:

1. It stops you getting out a target and then seeing the market continue on in the direction you anticipated

2. It allows you to stay in whilst the market is behaving correctly. E.g. breaking a level, coming back and retesting it before moving higher.

Don't pre-empt your exit either. Always exit when your stop is hit.

Stops on pins and inside bars are incredibly simple. They go the other side of the candle!

 

[foredog]

Like entries there's many exit strategies.

No one can say which is wrong or right as they (should) all work in their own way and suit the trader.

Sometimes not taking off part at R:R 1:1 would result in a bigger gain on a trade as you'd still be in the whole lot if it kept going, but other times it'll hit that 1:1 point and ping back straight through BE.

 

[Technically Fundamental]

"Stops are for people who think they might be wrong."

lolololololololol

No really though I have trouble because I cant grasp the concept of using stops unless they are really tight which doesn't allow for temp volatility after entry (which tells me i need to work on entry) and so they are often rendered quite useless. I know this is prob because I need to pick better instruments to trade. Basically this is all mainly due to my being VERY green an inexperienced.
All this chat on here has helps me though.

Is it better to learn by basing your stops on risk/reward or on charts and analysis then evaluating decisions with risk/rerward?

Also what do you profs think about what i said earlier "trying to use failing markets as indicators to where I might find a profitable short in/out trades e.g. dow drops possibly profit in shorting $/HKD etc" - should i stop that?

 

[Technically Fundamental]

I have tried a lot of different exits and the most profitable is trailing your stop above or below the candle that closes above or below the next pivot in the direction you took the trade.

This strategy serves two very good purposes:

1. It stops you getting out a target and then seeing the market continue on in the direction you anticipated

2. It allows you to stay in whilst the market is behaving correctly. E.g. breaking a level, coming back and retesting it before moving higher.

Don't pre-empt your exit either. Always exit when your stop is hit.

Stops on pins and inside bars are incredibly simple. They go the other side of the candle!

This wouldn't be applicable to intra-day trading would it?

 

[trader_dante]

This is the exit strategy using todays 1hr pin on the Eur/Gbp.

Entry above pin at 0.8971 (+2 for spread)

Exit below the pin at 0.8948.

Risk is a total of 25 pips.

 

[trader_dante]

This wouldn't be applicable to intra-day trading would it?

Yes it would. This is how I trade intraday.

 

[trader_dante]

Move your stop as shown on the chart.

At the point you move it you are up 62 pips.

Your stop loss will take you out +14.

Do not be scared to give money back to the market. It is necessary to catch the big moves.

 

[trader_dante]

This time when you move it you are up 148 pips.

Your stop loss will take you out at 101 pips profit.

 

[Technically Fundamental]

This is the exit strategy using todays 1hr pin on the Eur/Gbp.

Entry above pin at 0.8971 (+2 for spread)

Exit below the pin at 0.8948.

Risk is a total of 25 pips.

So logical when you see it.

This is my problem. I'm trading for tradings sake just to try and get experience and to make profit instead of biding my time and picking these kind of entry points which is what a proper trader should be doing.

 

[trader_dante]

This time when you move your stop you are up 198 pips.

Your stop will take you out at 146 pips up.

This is the way to do it.

 

[foredog]

"Stops are for people who think they might be wrong."

lolololololololol

No really though I have trouble because I cant grasp the concept of using stops unless they are really tight which doesn't allow for temp volatility after entry (which tells me i need to work on entry)

If you don't want to use a stoploss that's fine with all of us, it's your account you'll blow up!

One day you will get into a trade where you sell, if goes down a little then goes up past your entry. You'll sit there and think "it'll go down in a minute" then it'll go up some more and you'll think "this has got to be the top now" and it'll go up again and finally it'll get to the point whrer you've lost 25% of your account on this one trade and the pain will be unbearable and you'll cut it and think "why didn't i have a stoploss in" and you'll probably have cut it at the top.

 

[Technically Fundamental]

Your earn my gratitude again boss Dante.

I have once again absorbed some of your thought patterns just as a cutting board absorbs the remnants and aroma of a fine cheese that was diced upon it's crown.

 

[Technically Fundamental]

If you don't want to use a stoploss that's fine with all of us, it's your account you'll blow up!

One day you will get into a trade where you sell, if goes down a little then goes up past your entry. You'll sit there and think "it'll go down in a minute" then it'll go up some more and you'll think "this has got to be the top now" and it'll go up again and finally it'll get to the point whrer you've lost 25% of your account on this one trade and the pain will be unbearable and you'll cut it and think "why didn't i have a stoploss in" and you'll probably have cut it at the top.

Thats why I asked for help. It almost happened once when i called a short on the dow in the afternoon before home time. I had to hold on to it for an extra 24 hours and I was sweating a bit. It came out at a big profit in the nd (as it should have earlier on lol) but I still got the point. I only trade with stops now. Its the proper way to do it and I want to learn.