Exits or Stop and Reverse?

[trendie]

Been wondering about Exits.
Why do we exit, if it doesn't also mean Stop and Reverse?

If you are Long, it's because you believe the market is going to rise.
Why do we exit, unless it's because the market is now going to fall, in which case why not Stop and Reverse?

Personally, it's because I want to take money off the table, but that's a sort of fear of gains being given away, rather than a structural shift on direction.

I am beginning to think my trading is technical entry with a fear-based exit.

You?

 

[wallstreetwarrior87]

Hi Trendie,

Stop and reverse is dangerous due to the market having a motive but at times not ready to go. So when its not ready to go its wise to get out, as you are risking time being in the trade that is not moving. But to go short means running the risk of being turned over straight away while at the same time obtaining an even worse price for the trade you wanted in the 1st place.

Markets test price levels a lot of the time, reversing trades will result in the user becoming the cannon fodder in the accumulation process for which the user can not see, nor are they even aware of the underlying situation they are trading in.

Every trade must have a value element within it. Reversing purely based on price movement and (speed) is like trading on the seat of your pants. Impulsive elements will arise which is not healthy for a trader.

IMHO

 

[cantagril]

I am beginning to think my trading is technical entry with a fear-based exit.

You?

I like to think that I'm ahead of you there in that I tend toward Greed based entries and Exits out of sheer terror

More seriously (a tad) I went through a phase a few years ago where I did a lot of Exit and Reverse trades. Though I was reasonably profitable, I found that I was watching the screen even more than was my wont and that I'd turned myself into a DayTrader....which I'm crap at.

 

[barjon]

My main thing is trading 3+ bar pullbacks in anticipation of trend continuation. My target is the previous trend high where there is a good chance of reversal. If I were not in any trade I would not consider a short trade at this point because it would be against the prevailing trend and therefore too risky. Thus, stop and reverse would not feature.

I often stop and re-enter a tad later in the same direction, though, but that’s another story

 

[barjon]

.....oh, and I should add that I trade in fear from the moment I enter. I‘ve got a heart monitor implanted in my chest and my consultant can tell exactly when I’ve been trading and whether it’s shares or Nasdaq. What he’s going to make of the last few days goodness knows