Sunday Debate: entries and exits

barjon

Legendary member
10,594 1,733
Look around and you will find millions of words devoted to how and when to enter a trade, but precious few devoted to how and when to exit a trade. Any fool can enter, but it takes skill to exit to best advantage.

So, your topic for this week is:

A good entry is important, but a good exit is crucial

enjoy

jon
 

Splitlink

Legendary member
10,850 1,233
Over the years, I have allowed the market to take back what I have taken from it, in the same trade.
In addition, I have advised, more than once, in leaving the original stop where it is, instead of moving it up, at least, to break even. I'm beginning to wonder whether I will, at this late stage, ever learn differently because, no matter how many times one gets stopped at breakeven, at least his account is intact for another trade. Sooner or later, if he is a good trader, one of the trades will keep going.

On the other hand, although I am a great believer in the logic of letting the winners run I find that so many times I get 16 points profit, only to allow the trade to close at a few points loss. Since this happens more times than I can count, it may be more profitable to take this "bread-and-butter" money instead of waiting for the big one. Whatever I do, I should make sure that some profit is locked in with a closer stop.

Many do say that they take 10 points and get out. I think that they could well be right over a longish period, rather than waiting for the profits to run.
 
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Splitlink

Legendary member
10,850 1,233
Exiting too early with profit is better than exiting a losing trade too late. :)
The trick is to know what time is "too early". :)

Not taking your advice has held me back more than it should have.

I hope others take heed of your advice but I think that it is the difference between "income" and "riches".
 

RockyRacoon

Active member
139 16
I think the old saying: "cut losers, let winners run" creates far more losers than winners..........I still struggle to get that mentality out of my trades.

Who was the author of that evil saying anyway?
 

Splitlink

Legendary member
10,850 1,233
Any fool can exit but it takes skill to enter to best advantage? :D
Not so sure about the "any fool" bit. As I said, my entries are ok, but I'm inclined to think that they are so good that they won't go into loss. They can, and do, quite often.

Greed, I suppose.
 

shadowninja

Legendary member
5,524 643
I think the old saying: "cut losers, let winners run" creates far more losers than winners..........I still struggle to get that mentality out of my trades.

Who was the author of that evil saying anyway?
It may be more relevant to investing or position trading. Personally, I've found that you have to manage trades differently depending on why you entered a trade. The "why" is determined by many factors: timeframe, news events/data releases, the set up reason (candlestick pattern, chart pattern, indicators, price action), your trade direction in relation to the trend, etc.
 

tomorton

Legendary member
8,092 1,196
I think the old saying: "cut losers, let winners run" creates far more losers than winners..........I still struggle to get that mentality out of my trades.

Who was the author of that evil saying anyway?

Agreed. This is a saying that smacks far more of the investment market than trading. Should be superceded by the first law of business - Get the money in the bank.
 

Splitlink

Legendary member
10,850 1,233
Ha ha! So true!

All I know is I hate it when I close a trade for a loss that 5 minutes earlier was profitable.

So "early" must mean - whenever you have a profit. :)

My next problem is "A big profit" or "A little profit". ?

These are daft questions but it makes the difference between being a part of the minority winners or the majority losers.

Is it worth taking the trade for peanuts? I suppose that if the peanuts come in on a regular basis the answer is "Yes"

On Aug 4th I took 68 points on one trade. Since then, I have lost most of that gain in the kind of trades that I have mentioned ie. trades initially making 10-16 points but ending in a loss.

So much for being on holliday!

Perhaps a trailing stop is the answer but SB does not have that.

Reading my posts it can be seen that exits are a serious problem for me. All psychological, of course! :eek:
 
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RockyRacoon

Active member
139 16
My next problem is "A big profit" or "A little profit". ?

These are daft questions but it makes the difference between being a part of the minority winners or the majority losers.

Is it worth taking the trade for peanuts? I suppose that if the peanuts come in on a regular basis the answer is "Yes"

On Aug 4th I took 68 points on one trade. Since then, I have lost most of that gain in the kind of trades that I have mentioned ie. trades initially making 10-16 points but ending in a loss.

So much for being on holliday!

Perhaps a trailing stop is the answer but SB does not have that.
Well, we can start a discussion about what one's definition of peanuts is ha ha!

I've been trading micros, trying to only trade for 1% - 3% of account size per session - - I probably averaged about 2% or 3% per trade for the last few months and have doubled my micro account with what I think are peanuts. Granted, I know it is only a micro account.

For me, exiting early based mainly on a "percentage of account" based goal most of the time is the way to go lol.
 

bangkoker

Well-known member
314 17
re post about SB not having trailing stops.

-
IG have trailing stops on there SB platform. It seems a good compromise, it is so hard to know when to take profits. Atleast by moving stop to b/e can not lose and a trail stop, sould enable bit piece of move before any retracement, I have a feeling taking profit and stops will be something I will struggle with for sometime, entry seems more logical.
:(
 

ibetyou

Active member
249 36
The trouble is everyone is playing diffrent time frames,a scalper takes a profit as soon as he can see say 10 points.
A day trader is looking for a bit more say 30 point
A weekly trader is looking for 300 points.
And so the same it is with stops,the longer the time frame the bigger the stop.
I like to see a return of 4/1 on a trade.so if im going to have a 100 point stop im exspecting the market to move 400 points in my direction.
As for the exit i set a target as i know if it goes up 400 points it will have become over bought.
if it hits my target i'm happy if it carrys on up 200 points more i don't care as it would be so over bought it will be back soon.
As for taking a profit if it does not reach my target then my stop comes in to play,
I move it to the day befores low as if it makes a new low i want to be out of it.
Should it move say 200 points in a day but not reach my target by 50 points then i take it.
The target is only a guide.
 

Jason101

Experienced member
1,372 215
Perhaps a trailing stop is the answer but SB does not have that.
Some do as pointed out. But this would mean trailing a stop at a arbitrary number. If this thread is correct about the importance of the exit then why exit so randomly?
 
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