Best Thread Quick reference for real trading profit. Tips that work

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cassiopeia

Active member
133 2
"You'll never go poor taking a profit"

Not on any single trade, but within a strategy taking profits too early without good reason is a sure road to ruin.

It is easy to have plenty of profits relative to losses, just take any liquid security and trade at random, define a stop to take a profit, say Price + X and a stop to take a loss say Price - (3 times X). Keep on repeating.

You will gets lots of profitable trades this way, far more than the losing ones, but overall you will lose money. So one must define how the profits relate to the losses. Many profitable strategies have less profitable trades than losing trades but the average magnitude of the profitable trades are far larger than the average losing trade (the opposite of above) a variation on the run profits cut losses theme. This is psychologically more difficult to do than snapping at profits.
 
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RogerM

Established member
752 6
A quote from Linda Bradford-Raschke, a brilliant US Trader :-

" Deciding to stand aside is taking a position"

Whenever I get impatient, I try to remember this one.
 

RedE

Junior member
25 2
Find an Edge. Use your Edge. Stick to your Edge.
Preserve your Capital.
 
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PurplePerson

Active member
157 3
If your system ain't working, change no more than one variable factor at a time. Otherwise you'll never know which was to blame.
 

PurplePerson

Active member
157 3
It's a game of snakes and ladders, in which some of the rungs are weak and some of the snakes are invisible. Allow for that.
 

PurplePerson

Active member
157 3
Don't fight the market; it's miles bigger than you.

Which I guess is much the same as the familiar "The markets can stay irrational longer than you can stay solvent."

There's no shame in backing out. It's what reverse gear is for.


Don't go bust trying to prove you are right.
 
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warm_machine

Member
70 0
If there's any doubt...then there is no doubt

ie. don't make the trade
 

warm_machine

Member
70 0
options...as to what makes me, personally, take the decision to place a trade, I stick by my quote above. I simply will not make the trade if there's any doubt whatsoever. I know trading opportunities are limitless so if something doesn't add up on one particular trade, I will let it pass and wait for the next opportunity. YTD you can count on one hand the number of times I have lost yet I have made hundreds of trades.
 

kevin546

Established member
699 0
After a intraday down trend only buy on a higher pivot low and only sell after a rising trend on a lower pivot high for a less risky approach and be prepaid to take small profits sometimes.

Kevin
 

options

Senior member
2,374 218
Correct Skim.

I wanted to see what techniques were in common, (or uncommon) use; what defines your buy and sell point; why take that particular trade etc, and what was actually working for people. Not a list of meaningful proverbs. These have been covered elsewhere.
 
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