should I stay in this trade?

[dgtrading]

bought into this trade on the close of thursday's trading session, after a bullish pin bar had formed. But today the stock took a dive with little buying power.

my stop loss is currently below the low of the pin bar, should i exit this trade prematurely due to excessive selling?

 

[malaguti]

bought into this trade on the close of thursday's trading session, after a bullish pin bar had formed. But today the stock took a dive with little buying power.

my stop loss is currently below the low of the pin bar, should i exit this trade prematurely due to excessive selling?

what's your timeframe?

 

[dgtrading]

what's your timeframe?

daily

 

[tomorton]

If confirmation by the supportive close following the bullish pin bar was the reason for entry, then the reason remains valid until the pin bar is neutralised by price action below its low. You were presumably ready to risk a price fall of that distance and naturally the £ per point is not going to breach your own money management rules so no reason to exit prematurely.

 

[dgtrading]

If confirmation by the supportive close following the bullish pin bar was the reason for entry, then the reason remains valid until the pin bar is neutralised by price action below its low. You were presumably ready to risk a price fall of that distance and naturally the £ per point is not going to breach your own money management rules so no reason to exit prematurely.

Yes that was my reason for entry and yes I am will to take the loss, it's just in past trades i haven't experienced such selloffs after these bullish pins.

maybe i should just take these trades when they are on the trend line as I've seen these setups perform consistently

 

[dgtrading]

I joined this site 8 years ago and wasted about a year following text book strategies (think at least half this time was spent on "pin bars") and following advice from people who didn't know enough about markets to trade successfully.

You simply don't have the perspective or experience to comprehend how difficult and competitive this business is. You will not achieve any level of success copying others or following "strategies" which you can find in textbooks or websites.

The trade / stop placement you post would be a loser 90% of the time. I understand why but cannot explain due to a promise I made to my mentor. You seem to be okay with assuming the strategy will work based on the opinions of others so hopefully for your sake you can be open to the possibility that the strategy is doomed to be a net loser. You are highly unlikely to devise a profitable strategy with concepts from books and the Internet. And I'll emphasise that seeking to copy someone else cannot and will not work.

As ever people are free to make their own choices but you ought to be aware at the outset that you are leading down a very well trodden path to failure. A quick search of my old posts should be enough to put you off going in circles surely....

thanks for the encouragement.........all i'm saying is that i've seen these pin bars on the dips in trend to lead to surges upwards, especially if it is on a trend line.

any insight into this individual trade? or another paragraph of misery

 

[malaguti]

daily

I'd say leave it alone. It looks like a retracement and might come down to the 55/56 mark but there's certainly no reason to suspect "excessive" selling
Although a little harsh from Lurker, I would possibly look at your strategy if you have one. If you enter a trade, you must must know where your exit is and that exit has to then negate why you entered the trade in the first place.
you shouldn't get cold feet just because it goes down a couple of days

 

[dgtrading]

I'd say leave it alone. It looks like a retracement and might come down to the 55/56 mark but there's certainly no reason to suspect "excessive" selling
Although a little harsh from Lurker, I would possibly look at your strategy if you have one. If you enter a trade, you must must know where your exit is and that exit has to then negate why you entered the trade in the first place.
you shouldn't get cold feet just because it goes down a couple of days

yes I just suspected this selloff due to the absence of a tail. yes I have placed my stop loss where i have because if price breaks this level then it negates the trend rule that resistance becomes support (I know this is not always the case)

thanks for the constructive reply

 

[Atilla]

bought into this trade on the close of thursday's trading session, after a bullish pin bar had formed. But today the stock took a dive with little buying power.

my stop loss is currently below the low of the pin bar, should i exit this trade prematurely due to excessive selling?

If you have to ask then I'd say get out.

Expectations have not been met and can only imagine you are in a slight teeny weeny daze.

The chart patterns mean jack poop on their own. Need to combine with fundamentals+news.

If there were high volume of sellers then what is it that you know they don't to justify holding. You are at the total mercy of what others will do and then you can look at some historical lines around some random numbers.

Alternatively what do they know that you dont?

Either-way as they say in the movies - Get the f**k outta that trade pronto! imho

 

[malaguti]

yes I just suspected this selloff due to the absence of a tail. yes I have placed my stop loss where i have because if price breaks this level then it negates the trend rule that resistance becomes support (I know this is not always the case)

thanks for the constructive reply

Ok good, then leave it alone and if it hits your stop well at least your following your plan. Now, I say that on the proviso that your plan is a profitable one. a backtested strategy that should give you the confidence to take a few losses, knowing that your winners will make up for it.
If you don't have that confidence, go back and revisit your strategy. I would argue though that if you are indeed down to you last £100 (from your thread) and more so from the last count, that you don't have the luxury of a profitable strategy so I would be more concerned right now about finding one and preferably when you are not completely broke. don't leave it til its too late

Personally i don't trade off trendlines, I find them far too subjective. and as for candle patterns such as pin bars, well that's just like witchcraft to me

 

[spinola]

If you're having to ask, I say , get out as soon as you sense that .

It suggests you're not entirely confident with your technical approach (yet) used to find, and manage, trade ops.

Review what your exit strategies are , then execute them. If, once in a trade, you use a fixed stop to protect capital , and by extension manage market randomness, then leave the trade alone. But you should know that, and not be asking any, should I, or shan't I type questions. (although it's good you did for raising awareness )

If the trade turns and gives you a huge windfall, that will likely start reinforcing , set in motion, intermittent , unpredictable, undesirable trading behaviour, which ultimately will probably lead to even deeper feelings of uncertainty down the road.

Just my thoughts. And we all have to learn, so all the best with it.


Final thought.

What's more important to you ? Do you want the trade to be a winner , or do you want to know you did the right thing , no matter what the trade outcome may be ?

 

[dgtrading]

If you're having to ask, I say , get out as soon as you sense that .

It suggests you're not entirely confident with your technical approach (yet) used to find, and manage, trade ops.

Review what your exit strategies are , then execute them. If, once in a trade, you use a fixed stop to protect capital , and by extension manage market randomness, then leave the trade alone. But you should know that, and not be asking any, should I, or shan't I type questions. (although it's good you did for raising awareness )

If the trade turns and gives you a huge windfall, that will likely start reinforcing , set in motion, intermittent , unpredictable, undesirable trading behaviour, which ultimately will probably lead to even deeper feelings of uncertainty down the road.

Just my thoughts. And we all have to learn, so all the best with it.


Final thought.

What's more important to you ? Do you want the trade to be a winner , or do you want to know you did the right thing , no matter what the trade outcome may be ?

The trade took a further dive today wiping me out of the position. Didn't help the company that one of their planes crashed in France today RIP.

On a technical note I should take the hint that a sharp drop after this signal is a sign to get out, and maybe in the future move my stop loss up to friday's low

 

[Trader333]

In my view you should stick to your original plan as most traders lose in the long term by not doing exactly that.

 

[dgtrading]

In my view you should stick to your original plan as most traders lose in the long term by not doing exactly that.

i'll bear that in mind, it's just the results of some of my trades confuse me at times

 

[Atilla]

The trade took a further dive today wiping me out of the position. Didn't help the company that one of their planes crashed in France today RIP.

On a technical note I should take the hint that a sharp drop after this signal is a sign to get out, and maybe in the future move my stop loss up to friday's low

Well either the price drop was due to low Euro reflecting on earnings

or

One may conclude exceptionally low euro boost exports

or

it's a conspiracy and somebody knew about this crash in advance. :?:

http://www.bloomberg.com/news/artic...crashes-in-digne-region-in-france-police-says

 

[dgtrading]

Well either the price drop was due to low Euro reflecting on earnings

or

One may conclude exceptionally low euro boost exports

or

it's a conspiracy and somebody knew about this crash in advance. :?:

http://www.bloomberg.com/news/artic...crashes-in-digne-region-in-france-police-says

possibly, possibly and possibly. my general train of thought is the declining euro is boosting exports over the long term at the moment.

checkout my trading journal and if you have an opinion on my recent watch list it would be appreciated

http://www.trade2win.com/boards/trading-journals/203954-down-100-lets-do-5.html#post2514522

 

[malaguti]

The trade took a further dive today wiping me out of the position. Didn't help the company that one of their planes crashed in France today RIP.

On a technical note I should take the hint that a sharp drop after this signal is a sign to get out, and maybe in the future move my stop loss up to friday's low

odd, your trend line hasn't been broken and yet you still got out adding another (steeper) trend line..are you really just looking for a reason to have exited.

 

[Charles Bronson]

I would stay in. There is a slight downside to come before it hits support. Will complete the downmove in the next two weeks and then continue on up.

Keep watching.

 

[dgtrading]

Yes I am out of the stock at the moment as I don't like tying up capital in a drawback.

I'll watch the euro too as I've read the recent rally might affect German exports, even though Germany has a strong underlying economy at the moment. Hopefully it is short lived and BMW will continue its uptrend.