Enter the newbie...
Erm a quick question for you professional trader people.
How do you conclude a level which if breached will convince you of a trend?
I regularly find myself upset when hold out for a big gain when attempting to short an uptrend. I then get scared to try buy in the uptrend in fear of a dip...
Any advice or do I just need more balls and experience?
Hi,
I'm not a professional, just a retired amateur, but I believe that Tom is correct when he says that exits are more important than entries. How many times have you seen a profit disapear before your very eyes, never to return on that trade, but worse, turn into another loss which slowly bleeds your account to death?
This haemorrhage of one's account is what has to be avoided. As long as the profit is no more than a few points and the account is well padded, it is ok to see if the price will recover. However, constant losses should be brought to, at least, break even.
This why I believe that overnight trading is bad for one's wealth unless you can put a stop to, at least breakeven, with the price a reasonable distance away from that stop, before the day's close.
I try to get into a trade in the morning and, normally, get out before I go to work in the afternoon. I prefer that few points apple, rather than the possible, but not certain, orchard waiting to be picked the next day.
This is, very much, character and you must be comfortable with yourself, when trading.
Don't forget that overnight trading has another caveat. You have to sleep on it.