Dailies exits.

[HaloTrader]

Hello. Quick question for those who are seaoned swing traders of UK shares(daily + charts)...
If you check your charting software. And you see that an exit signal has come on a particular trade your in. How do you exit the market - Do you check for signals at closing time, close the trades when the market opens the following day, set orders a few pips below the low for an exit keeping in mind you may be gapped...
What is the general concensu?

I think that it would be best to look at your open trades at 4.20 - Look for exit signals and if they are there, exit then... What are others approaches?

 

[barjon]

Halo

I don't have an exit signal as such, but an exit zone with protective stop just outside it. If price enters that zone I watch intraday price action and exit at the best I can get unless it bounces out of the zone pretty smartish (I'll probably move zone closer if that happens). If I'm not about as price enters the zone, I'll move to intraday the next day if the daily candle has been in the zone - always assuming it hasn't gone through it to the stop, or doesn't with an opening gap. Not sure if that helps.

good trading

jon

 

[HaloTrader]

Okay thats interesting Jon... So basically set an alarm at these levels and then monitor them when reached.
Thanks ^^

 

[Splitlink]

Okay thats interesting Jon... So basically set an alarm at these levels and then monitor them when reached.
Thanks ^^

I would not trust the index to open in my preferred direction the next morning. I would close before the EOD although, let's face it, you could make a packet the next morning.

The problem is that, if they think that there are plenty of stops there, the MMs will try to take them out at the open. It's easy money for them and, quite often, the action can be seen, in hindsight, as a spike or gap that gets filled.

 

[Windowsill]

Hello. Quick question for those who are seaoned swing traders of UK shares(daily + charts)...
If you check your charting software. And you see that an exit signal has come on a particular trade your in. How do you exit the market - Do you check for signals at closing time, close the trades when the market opens the following day, set orders a few pips below the low for an exit keeping in mind you may be gapped...
What is the general concensu?

I think that it would be best to look at your open trades at 4.20 - Look for exit signals and if they are there, exit then... What are others approaches?

I don't trade shares & I don't trade overnight. However, if I did, I would, assuming you have sensible money management systems, always be stopped out. Perhaps a limit stop in place also. I don't see why swinging should be much different to day trading. I say sensible money management beause the early day swings of price would take out tight stops which would be rather annoying. I just feel on balance you should let things run until its obvious you should be entering position in the opposite direction.

 

[HaloTrader]

I don't trade shares & I don't trade overnight. However, if I did, I would, assuming you have sensible money management systems, always be stopped out. Perhaps a limit stop in place also. I don't see why swinging should be much different to day trading. I say sensible money management beause the early day swings of price would take out tight stops which would be rather annoying. I just feel on balance you should let things run until its obvious you should be entering position in the opposite direction.

Well basically... Like in day-trading i have a stop loss, target but also an exit signal which can come before my target of stop loss - This signal comes on the daily so i'm figuring out where best to exit once a daily exit signal is given.

 

[Splitlink]

I don't trade shares & I don't trade overnight. However, if I did, I would, assuming you have sensible money management systems, always be stopped out. Perhaps a limit stop in place also. I don't see why swinging should be much different to day trading. I say sensible money management beause the early day swings of price would take out tight stops which would be rather annoying. I just feel on balance you should let things run until its obvious you should be entering position in the opposite direction.

Believe me, I've had some. Now I don't do it.

The last one was DMGT. This is a newspaper group that was on the verge of disposing of its free press paper. They made an overnight decision not to sell it, the result being a drop of 80 points on the open. My stop was not close.

It can, and does, happen the other way, of course, but I prefer to close out before EOD, unless I am in for the long haul.

 

[Windowsill]

Believe me, I've had some. Now I don't do it.

The last one was DMGT. This is a newspaper group that was on the verge of disposing of its free press paper. They made an overnight decision not to sell it, the result being a drop of 80 points on the open. My stop was not close.

It can, and does, happen the other way, of course, but I prefer to close out before EOD, unless I am in for the long haul.

I see you're point. Its all down to the relationship between the amount of commitment and the stop distance....In otherwords,,, if you have a small trade amount for the long haul you are not going to be concerned about daily fluctuations. If you actually have the shares stops would not be even considered as you would be looking for a 2/5 year timespan.