SOCRATES said:I recommend you read through my thread "Journey from the Basement".
I've read it all
I do need to go through it again sometime fairly soon though.
SOCRATES said:I recommend you read through my thread "Journey from the Basement".
Good ! Excellent ! I am pleased ...jimmy1jag said:I've read it alland worked on some of the nuggets contained in there!! I have to say that that thread has sent me down several very interesting and rewarding paths. Thank you.
I do need to go through it again sometime fairly soon though.
There are many kinds of edges. There are edges on Technology, Technical Analysis, Timing,fxmarkets said:with stops and when people are venturing off into it all, it doesn't help them that you frequently come across advice along the lines of, need to give it room, perhaps encouraging an image that pro's are , happy for negatives against their position for a period of time because it or they are seen to be cool and not shaken by this move against entry. In short, theres so much out there and people can guess that this is what goes on so i'll hold in, like a pro...
but you do come across successful traders who take this stance and come out overtime profitable, is it fair to say that they have half an idea on entry, average and , solid discipline, to hold when its against ? But even they would increase profit to risk if they sorted the entry out. Grind an edge to it all.
Hello Barjon, it is absolutely a matter of timing, razor sharp timing, to the nanosecond, as part of reflex in response to instantaneous judgement, particularly in challenging situations in very fast and very liquid markets, where there are some super whipsaws and sudden plummets and other marvels.barjon said:I suppose it's a question of timing - if your sense of direction is good AND your timing is good then tight stops follow. However, if your timing is iffy then.....................
From general discussions with traders, I would say that excellent traders have excellent timing and - with only one or two exceptions I can think of - the excellent tend to tight stops. Be interesting to know if that's the impression others get.
good trading
jon
frugi said:I agree with Barjon and Socrates. Also good to see you posting again Socrates.
A loose stop is a tacit admission that one's entry may be poor.
Tight stops encourage one patiently to seek optimal entries and are cheaper than loose ones during the learning process, when finding them can prove elusive.
A tight stop allows the trader to be wrong several times yet when the expected big move is finally nailed these losses prove small in comparison.
I don't understand the concept of "breathing room". If the entry is good then breathing room is not required; if it isn't then get out and wait for another.
Tight stops demand more work and screen time from the trader, but the reward is commensurately greater, as it should be. They also take one out of the market quickly and cleanly, thus allowing for more objective judgement than may be available to someone stuck in a loose stop losing trade.
Tight stops allow the trading of greater size for the same risk as a smaller pozzie with a looser stop. This helps P/L enormously when entries become sharper.
Of course loose and tight are subjective definitions and a scalper doing 4000 turns a day is likely to use a tighter stop than, say, someone investing in the dogs of the Dow once a year, but imho learning traders of all timeframes are apt to seek false comfort in a looser stop than is prudent or logical. This observer certainly did.![]()
TheBramble said:Within the context of the thread initiator's first post, the majority of subsequent posts which have in any way attempted to address his question at all, have been largely correct in terms of discussing a protective stop.
He was asking about both.fxmarkets said:Thats what kunal needs as i read it, not trailing, at this stage i read it to to be and when he responded to a post, implies he is taking too many hits from entry, he wasnt or didnt seem to be talking about extracting optimum profit from majority of trades ,kunal said:Using a stop loss of 5%, I find that very often my stop is triggered after which the stock moves up again. Also, after the trade is in profit, by using a trailing stop I'm limiting the amount of profit that can be taken.
Hello frugi, thank you for your good wishes. I am veribizzi but try here and there to put a word in if and when I have some spare time available.frugi said:I agree with Barjon and Socrates. Also good to see you posting again Socrates.
A loose stop is a tacit admission that one's entry may be poor.
Tight stops encourage one patiently to seek optimal entries and are cheaper than loose ones during the learning process, when finding them can prove elusive.
A tight stop allows the trader to be wrong several times yet when the expected big move is finally nailed these losses prove small in comparison.
I don't understand the concept of "breathing room". If the entry is good then breathing room is not required; if it isn't then get out and wait for another.
Tight stops demand more work and screen time from the trader, but the reward is commensurately greater, as it should be. They also take one out of the market quickly and cleanly, thus allowing for more objective judgement and seeking of fresh opportunity than may be available to someone stuck in a loose stop losing trade.
Tight stops allow the trading of greater size for the same risk as a smaller pozzie with a looser stop. This helps P/L enormously when entries become sharper.
Of course loose and tight are subjective definitions and a scalper doing 4000 turns a day is likely to use a tighter stop than, say, someone investing in the dogs of the Dow once a year, but imho learning traders of all timeframes are apt to seek false comfort in a looser stop than is prudent or logical. This observer certainly did.![]()
fxmarkets said:Theres a gauntlet of very high standards to be achieved, being thrown to the ground in this thread, I guess its up to each individual if they have unshakeable belief in themselves , that over time, that they will continually extend grasp beyond their current reach ,leading to their time when they can simply reach and pick it up because thats what they expect of themselves.
well at least fondle the bugger.
Cheers Soc, thanks for your time.
Fx.