Newbie question

[dazpara]

Hi guys, ive just started out, and this is only my second post. A quick question. I have just managed to write my first strategy(swing trading). I have got my rules set out and i have followed them so far, my question is this, if for example my limit order gets hit on a swing trade and my position is closed. Then i see that trade continue into profit, now, should i re-enter that trade when i get signals that predict that trend continuing, even though it now contravines my rules (ie the stock is not on a retracement)?.What do you experienced guys do if this happens, as i've come accross a couple of trades where this has been the case. I know i could maybe have set my limt too close, but really this a re-entry question.Thankyou in advance. Darren.

 

[Enzzo]

Hi guys, ive just started out, and this is only my second post. A quick question. I have just managed to write my first strategy(swing trading). I have got my rules set out and i have followed them so far, my question is this, if for example my limit order gets hit on a swing trade and my position is closed. Then i see that trade continue into profit, now, should i re-enter that trade when i get signals that predict that trend continuing, even though it now contravines my rules (ie the stock is not on a retracement)?.What do you experienced guys do if this happens, as i've come accross a couple of trades where this has been the case. I know i could maybe have set my limt too close, but really this a re-entry question.Thankyou in advance. Darren.

I wouldn't re-enter any position based in an emotion of you seeing market going further your Target.... and what you "could have grabbed"

You should evaluate the trade before hand (entry, SL,Target, reasons for entering, etc, etc) as per your system, then, if the market proofs you right, and give you your "expected" profit.... take it, cool you down, and analyze it again to get into the next opportunity your system gives you

if you star to enter by emotions, I guarantee you that the "system" is gonna get screwed big time.....

Hope it helps

 

[ph_trader]

I belive that you just stick to the original plan even if the market goes your way after you exited! this is one of the mental pressure traders get every day!! but you have to counter it by thinking positive, a dollar in your hand is way better that 5 dollars that might cost you to lose!!

 

[tomorton]

No, the only way I get back into a trade is if the chart gives a complete new signal. This only comes (for me) after a retracement over at least 3 days.

Of course, looking back over completed trades and trade records does allow you see whether your target-setting is on the ball or needs to be adjusted (outwards or inwards for that matter).

 

[Enzzo]

Of course, looking back over completed trades and trade records does allow you see whether your target-setting is on the ball or needs to be adjusted (outwards or inwards for that matter).

Really spot on...
The track record is vital for issues like this one....

 

[intradaybill]

No, the only way I get back into a trade is if the chart gives a complete new signal. This only comes (for me) after a retracement over at least 3 days.

Of course, looking back over completed trades and trade records does allow you see whether your target-setting is on the ball or needs to be adjusted (outwards or inwards for that matter).

Good answer. I hope the OP will take it seriously.

 

[dazpara]

Thankyou to all who replied, i've taken on board whats been said and will be applying the suggestions.