Wot Happens Next?

[barjon]

Not exactly. As I posted originally, I'd wait for a retracement after a breakout. Those who have traded their share of failed breakouts will understand.

Of course I may have misunderstood the point of the thread.

Yeah, sorry dbp.

 

[foroom lluzers]

Do you know I'm getting really fed up with you and your trite sayings. If you want to participate then treat it seriously and show us exactly how you'd go about it. Not the simplistic run your profits and cut your losses that's so meaningless.

At this point , I would move my stop on second trade to 50 , the last low .The first should be managed is based on your risk tolerance .At 50 a simple spike will take you out , but is a good trade , I would just not do anything on first trade.

Avoiding a loss on this encourages you to move a stop to 51 b/e , but this also can get you out of a great trade.

 

[counter_violent]

Do you know I'm getting really fed up with you and your trite sayings. If you want to participate then treat it seriously and show us exactly how you'd go about it. Not the simplistic run your profits and cut your losses that's so meaningless.

Note to self.
Never engage lluzers...they have a nasty habit of dragging you down to their level and subjecting you to their ignorance.

 

[foroom lluzers]

I would not trade this stock , the spread on I G is about 20% of today's range , that is 20 % of daily profits gone , unless volatility is much higher on other days.

I trade dax and pay 0.5 spread with same volatility.It is more liquid.

I don't trade breakouts , I would not trade this way due to the psychological and timing issues.Loads of fakes and area of resistance.The way I would somethin like this is buy 2400 put and long the stock for days or weeks, if It had volatility and potential.

 

[barjon]

I would not trade this stock , the spread on I G is about 20% of today's range , that is 20 % of daily profits gone , unless volatility is much higher on other days.

I trade dax and pay 0.5 spread with same volatility.It is more liquid.

I don't trade breakouts , I would not trade this way due to the psychological and timing issues.Loads of fakes and area of resistance.The way I would somethin like this is buy 2400 put and long the stock for days or weeks, if It had volatility and potential.

then don't use ig - market spread is 50p

 

[tomorton]

LCG quote this at 2345.1/2349.3 = 4.2p spread or 0.18%, currently 9.7% of today's range. But for a multi-day position I find that's just fine.

 

[barjon]

LCG quote this at 2345.1/2349.3 = 4.2p spread or 0.18%, currently 9.7% of today's range. But for a multi-day position I find that's just fine.

Aye, LCG work commission on both sb and cfd via the spread.

 

[foroom lluzers]

Not exactly. As I posted originally, I'd wait for a retracement after a breakout. Those who have traded their share of failed breakouts will understand.

Of course I may have misunderstood the point of the thread.

Of course you are correct , like this breakdown has proved , a high percentage of trend breakouts fail , almost 80% of them fail to materialise.

To make money , you buy and hold for several days or weeks , until you get a worthile profit from trend breakout.

 

[foroom lluzers]

Another failed breakout . It can fail a dozen times and result in significant losses , for short term traders , wiping almost 20 % of account.

The best way to trade is wait patiently for a pull back , patience is an rare commodity in trading .Then buy some put options at 2400 to hold longer term cash trades.

 

[barjon]

Another failed breakout . It can fail a dozen times and result in significant losses , for short term traders , wiping almost 20 % of account.

The best way to trade is wait patiently for a pull back , patience is an rare commodity in trading .Then buy some put options at 2400 to hold longer term cash trades.

Not sure it's failed yet, fl. The intraday move failed to hold but not as far as the stop (the pullback you were waiting for patiently?) but we're still running and back in profit at the moment.

 

[barjon]

Ps: .......'course you could argue that yesterday's early profit should never have been allowed move into loss but that's another story

 

[barjon]

Similar movement to yesterday I've just closed off at marginally better than b/e since off out.

 

[foroom lluzers]

Similar movement to yesterday I've just closed off at marginally better than b/e since off out.

Emotions and feelings .

You have to be emotionless and not get involved in short term sentiment .Don't mean it in bad way.

 

[foroom lluzers]

Looks like a buy now at 2350 on open

Dow dax all ended higher

 

[foroom lluzers]

Looks like you have earned medal of emotional thinker , one who tries to think what the market is going to do next .

 

[barjon]

Looks like you have earned medal of emotional thinker , one who tries to think what the market is going to do next .

If you say so, fl . You're still hanging in there, though, despite having declared (twice) the breakout as failed. So what is you exit plan now?

Apart from the fact that I was going out my main reason for closing was that I had lost the rationale for the trade after it lost momentum and fell back on Wednesday. Thus I was now in a "luck" trade because the stop had saved it.

 

[foroom lluzers]

If you say so, fl . You're still hanging in there, though, despite having declared (twice) the breakout as failed. So what is you exit plan now?

Apart from the fact that I was going out my main reason for closing was that I had lost the rationale for the trade after it lost momentum and fell back on Wednesday. Thus I was now in a "luck" trade because the stop had saved it.

Stop at 2400.No exit .let it run .Buy and go away.If I lose 43 points ,so be it .If you watch the screens , market will play you and your emotions.It may hit stop during elections .


The main problem in short term trading is US the humans , we tend to enter a good trade , then try and judge what market is going to do next .Our reactive patterns come in , just like the short positions you put in earlier and your earliy exits.

I mainly trade 2 instruments Dax and Dow , I add several positions on pull backs ,then run them .The pull backs losses on existing positions are fully insured by put spreads , so my risk is nominal.You can run this type of trading without watching the screens continuously

 

[barjon]

Stop at 2400.No exit .let it run .Buy and go away.If I lose 43 points ,so be it .If you watch the screens , market will play you and your emotions.It may hit stop during elections .....................

Presumably you mean stop @ 2300?

Let it run to where? At current price you've now got 70 points at risk, you ok with that? So what are you going to do now you've gone away with no exit planned? Just pop back in and have a look now and then and call enough is enough on some sort of whim? The mind boggles

 

[foroom lluzers]

Presumably you mean stop @ 2300?

Let it run to where? At current price you've now got 70 points at risk, you ok with that? So what are you going to do now you've gone away with no exit planned? Just pop back in and have a look now and then and call enough is enough on some sort of whim? The mind boggles

Entry is at 43 , so net risk is 43.

close 1/2 now so 29 is recovered at 72 , so net risk is 43-29 =14

 

[barjon]

So if you risked £10 on a trade that went £1000 to the good and then came right back and triggered your stop loss then you'd pat yourself on the back for just losing £10 would you? I'd be going hairless because I'd lost £1010.