Set it and forget it vs. "Staring at the monitor"

thejaconator

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After entry: predetermining stop loss and take profit VS. Actively "babysitting" your position, possibly waiting for an exit signal.

In your experience, what do you think?

BTW...Forget about the self psychological factors please. Let us be eager traders ;)
 
Not so keen on specific targets and R:R any more so I manage the trade but that doesn't mean I stare at the monitor for hours.
 
I am for pre-determining both immediately on entry. TA too often concentrates exclusively on entry, whereas it is exit at target that makes the profit and exit at stop that protects the capital. If you can't see where you would get out, why is it such a good idea to go in?

If you can use auomated orders at stop an target, so much the better.
 
I presume this discussion is about short term trading, unless the implication is that swing traders are screen zombies.

Although I primarily trade stocks, I have recently started 'dabbling' (using similar methods) in the ES and the Bund - mostly because of time zones and the fact the US stock market opens at 8:30pm where I am.

If I am at home in the daytime, I will trade the ES from roughly 9pm eastern time right through until perhaps 11am eastern time. All I do is set up alert levels and then watch the tape/DOM if it hits one of those levels. There is no need to watch the screen all the time, in fact doing it would be detrimental as you'd feel the need to be in a trade. There is usually 1 good trade setup in the overnight session and then perhaps 1 or 2 in the morning on the ES. In all that time, I'm probably staring at the screen for an hour or so.

The Bund I have just introduced as it appears to fit the way I trade, this is something I just brought in over the past few weeks though, so it's pretty early to tell. It does appear on the surface to be a lot easier to trade than the ES. The same thing applies - have a look when you start - set up some levels and have an alert when it hits - then go look at some porn or something. Have a look once an hour to see if anything is brewing and perhaps set up some other alerts.

I can't concentrate on the DOM/T&S for long periods of time. It burns me out. So - I prefer to save my concentration and just focus at points where I think something interesting might happen.

Once you are in a position - of course you need to be a bit more active managing it but you don't need to be like this :

clockwork_big.jpg


I think there's a middle ground between "set and forget" and "screen monkey"
 
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I am for pre-determining both immediately on entry. TA too often concentrates exclusively on entry, whereas it is exit at target that makes the profit and exit at stop that protects the capital. If you can't see where you would get out, why is it such a good idea to go in?

If you can use auomated orders at stop an target, so much the better.

This is an interesting theory Tom. If you are capable of it, that is the best way to go. When I micro-manage a trade I usually use the elliot wave principle. Three pushes and then I get out.

Most the time I still use the set and forget strategy though because I make more pips that way, but when it's within an hour or so of my trade closing time, I'll start hawking for an exit point.
 
I'd like to ask but don't you find it more nerve wracking if you walk away and leave it then if you constantly monitor it?

How do you do it, do you place a trade do the analysis before hand and just say im prepared to lose £x amount and if I do I lose it and if I don't I'll meet my TP?
 
Set and walk away - yes, but.....
Yes..... I know from back-testing and forward-testing that enough trades of type X go right to provide a gain that outweighs the losses. You don't have to have 90% winners, nor a 10:1 reward:risk ratio - the game just has to be on your side. Meantime, make sure your drawdown on the accumulating losers doesn't take you out of the game before your statistical edge can put you in the money through the winners.
But...... I distrust orders left on outside underlying market hours and usually try to cancel these at LSE close and re-set at LSE open. ('But what about the gaps?' - I know that really massive gaps rarely occur, and that half the gaps that do occur are in my favour anyway.)
Its only nerve-wracking if you're not sure that in the next 100 trades you will be a winner. And if you're not sure of the net outcome of 100 trades, you don't have any right to place the first one.
 
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