Exiting trades

Joe Ross · Jun 24, 2011, 4:24pm

Hey Joe! It is so hard sometimes to make myself exit a losing trade. What should I do?

There is an old saying that goes like this: When day trading positions have had negative open equity most of the day, and an opportunity arises with less than 30 minutes of trading left in the day to exit the market at break even ─ go ahead and exit the market.

Unless the market is moving rapidly in your direction with expanding-in-length bars, and no more than 5 minutes left, exit immediately and consider the opportunity to exit a gift. Day traders are limited by the number of minutes that exist in a trading day and their profit objectives must take this fact into account before trade initiation. It should be extremely rare for you to initiate a day trade with less than fifteen minutes to go before the Close.

Better yet is to make it a rule to never ride a position having negative open equity. Unless you like to suffer, there is no point in holding a losing position for very long.

Best bet is to exit losing positions as soon as possible, and wait for a more opportune time to re-enter the market.

shadowninja · Jun 24, 2011, 4:37pm

Sounds like you're talking to Masq here.

bedsit · Jun 24, 2011, 5:23pm

Quote:

Originally Posted by Joe Ross

Better yet is to make it a rule to never ride a position having negative open equity. Unless you like to suffer, there is no point in holding a losing position for very long.

Best bet is to exit losing positions as soon as possible, and wait for a more opportune time to re-enter the market.

If I closed all the trades with open negative equity I would hardly make any profit. I guess it depends on a trading style?

nunrgguy · Jun 24, 2011, 6:03pm

Ever heard of 24hr markets Joe?

1only · Jun 24, 2011, 9:24pm

Quote:

Originally Posted by nunrgguy

Ever heard of 24hr markets Joe?

Hehe, good question

scose-no-doubt · Jun 24, 2011, 9:34pm

zombie trader rises yet again!!

counter_violent · Jun 24, 2011, 9:52pm

I have lots of exciting trades and some dull ones too just for balance

Mr. Charts · Jun 25, 2011, 4:35am

"Day traders are limited by the number of minutes that exist in a trading day "

WOW !

Jun 24, 2011, 4:24pm	#1
Joe Ross Senior Member Member Since Nov 2003 182 Posts	Exiting trades Hey Joe! It is so hard sometimes to make myself exit a losing trade. What should I do? There is an old saying that goes like this: When day trading positions have had negative open equity most of the day, and an opportunity arises with less than 30 minutes of trading left in the day to exit the market at break even ─ go ahead and exit the market. Unless the market is moving rapidly in your direction with expanding-in-length bars, and no more than 5 minutes left, exit immediately and consider the opportunity to exit a gift. Day traders are limited by the number of minutes that exist in a trading day and their profit objectives must take this fact into account before trade initiation. It should be extremely rare for you to initiate a day trade with less than fifteen minutes to go before the Close. Better yet is to make it a rule to never ride a position having negative open equity. Unless you like to suffer, there is no point in holding a losing position for very long. Best bet is to exit losing positions as soon as possible, and wait for a more opportune time to re-enter the market. __________________ Get paid to trade! and Trade what you see, not what you think! --------------------------------- I make these posts for general readership. I do not now nor ever have expected other traders to do what I do. Trading is something that has to be personalized. My hope is that what I post may be helpful to many traders who use the forum. Ultimately, trading has to become your own. If whatever you are doing works for you, then keep doing it.

Jun 24, 2011, 4:37pm	#2
shadowninja Legendary Member Member Since Jul 2007 5,529 Posts	Re: Exiting trades Sounds like you're talking to Masq here. __________________ The markets can stay solvent longer than you can stay irrational. My sports trading challenge: http://www.trade2win.com/boards/trad...challenge.html

Jun 24, 2011, 6:03pm	#4
nunrgguy Veteran Member Member Since Aug 2004 606 Posts	Re: Exiting trades Ever heard of 24hr markets Joe? __________________ Entry is the least of your worries One of the funniest gurus, "Anything below the one hour chart is just noise" What does your arbitrary and extremely limited singular one hour bar with a random open and close actually consist of you idiot?

Jun 24, 2011, 9:34pm	#6
scose-no-doubt Legendary Member Member Since Apr 2010 4,550 Posts	Re: Exiting trades zombie trader rises yet again!! __________________ "What the **** is going on here?!" - Mickey B Looks like Scose be trollin' 'aaaaard tho... as far as some are concerned!

Jun 24, 2011, 9:52pm	#7
counter_violent Legendary Member Member Since Aug 2004 4,472 Posts	Re: Exiting trades I have lots of exciting trades and some dull ones too just for balance __________________ There is a gaping chasm that separates wafflers from doers Time Series Modeling....It's The Future ! Superficial I Am

Jun 25, 2011, 4:35am	#8
Mr. Charts Legendary Member Member Since Sep 2001 5,950 Posts	Re: Exiting trades "Day traders are limited by the number of minutes that exist in a trading day " WOW ! __________________ Mr. Charts Full time US Share Trader Contributor to T2W's Trading FAQ Book http://www.trade2win.com/books/trading-faqs T2W interview http://www.trade2win.com/knowledge/a...ichard-joyson/

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