How to let profits run?

[jessechan]

As a daytrader scalping index futures, I find myself always exit a small profitablbe position prematurely. Can someone teach me how to eradicate this bad trading habit? Or if there's any book that I can read to improve my trading mentality? Thanks.

 

[turtle trader]

As a daytrader scalping index futures, I find myself always exit a small profitablbe position prematurely. Can someone teach me how to eradicate this bad trading habit? Or if there's any book that I can read to improve my trading mentality? Thanks.

Split your trade into 2 or more lots - exit the first lot with you're normal target, then trail a stop behind the rest. You'll start to learn how to best manage the trade with your 2nd lot, as you'll have your profit locked in with the first.

Just a thought
Simon

 

[jessechan]

Hi, Simon,

Thanks for your suggestion. Just wonder if the 2 lot trade has gone awry, should I exit the 2 lots simultaneouly or should I exit them by stages? Thanks.

 

[neil]

Stops

Hi, Simon,

Thanks for your suggestion. Just wonder if the 2 lot trade has gone awry, should I exit the 2 lots simultaneouly or should I exit them by stages? Thanks.

If your stop is hit........... get out. Thus you live to fight another day

 

[jessechan]

Hi, Neil,

Thanks for your advice.

 

[One Eyed Shark]

Jesse

I have just read "New Trading Dimensions" by Bill Williams in the last few days, his style is to add agrresively into trends and he provides one or two useful techniques.

One of the better trading books I have read

 

[turtle trader]

If your stop is hit........... get out. Thus you live to fight another day

Absolutely. Hopefully what you'll find is that by adhering strictly to your stops like this, and letting the 2nd half of your winners run, your profit factor will increase and you'll find your strategy easier to trade too.

Simon

 

[jessechan]

Hi, One Eyed Shark and Simon,

Thanks for the replies. At the moment, I'm reading "High Probability Trading" by Marcel Link. I'll order a copy of "New Trading Dimensions" in due course.

By the way, I'm told that futures trading is 80% mental and 20% trading knowledge and skills, can someone let me know if there's any good book on maket psychology in relation to futures trading? Thanks.

 

[One Eyed Shark]

"Trading in the Zone" Mark Douglas

 

[SirFrancis]

Split your trade into 2 or more lots - exit the first lot with you're normal target, then trail a stop behind the rest. You'll start to learn how to best manage the trade with your 2nd lot, as you'll have your profit locked in with the first.

Just a thought
Simon

This is a great idea Simon, I'll give it a go as I suffer from the same malaise!

 

[15 min tlb]

Re: Stops

If your stop is hit........... get out. Thus you live to fight another day

Great advice on letting profits run.

 

[15 min tlb]

Hi, One Eyed Shark and Simon,

Thanks for the replies. At the moment, I'm reading "High Probability Trading" by Marcel Link. I'll order a copy of "New Trading Dimensions" in due course.

By the way, I'm told that futures trading is 80% mental and 20% trading knowledge and skills, can someone let me know if there's any good book on maket psychology in relation to futures trading? Thanks.

There is a psychology forum and loads on this thread about why trading is 80 % phsychology.

http://www.trade2win.com/boards/first-steps/166670-8-methods-consistent-profitability.html