when should i get out of the market ??

NVP

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Jun 21, 2004
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#16
as an old mentor of mine used to say .......a good entry strategy will get you to break even over time .......but a good exit strategy is needed to make you profitable

so little is talked or utilised regarding exit strategies ......that’s why 95% of traders fail
 

NVP

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Jun 21, 2004
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#17
Before I enter the market I know where I want to exit if the market gets to that point. Because in times past I have found that can very frustrating once in the trade and trying to decide to stay in, or get out. Sure one has to be uncomfortable that is why I plan this before I enter the trade.
the best traders just focus on managing the worse case scenario when they look for trades .....then any upside takes care of itself ......

i can’t believe how many traders talk about getting 1:3 returns etc ......a trader has no idea however much any trade will make ....it’s all about managing the loss that you can control ......consistently and in a sensible strategic approach over time and large sample size

N
 
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Aug 19, 2018
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#18
as an old mentor of mine used to say .......a good entry strategy will get you to break even over time .......but a good exit strategy is needed to make you profitable

so little is talked or utilised regarding exit strategies ......that’s why 95% of traders fail

I could not have put it better. How and when you exit the market is just as important as how you enter it.
 
Sep 9, 2010
41
1
18
Compton, Ca.
#20
the best traders just focus on managing the worse case scenario when they look for trades .....then any upside takes care of itself ......

i can’t believe how many traders talk about getting 1:3 returns etc ......a trader has no idea however much any trade will make ....it’s all about managing the loss that you can control ......consistently and in a sensible strategic approach over time and large sample size

N
I agreed with you so many traders talk about 1:3 returns I am starting to believe a lot of it is just talk. You have to get with the market will give you, and I don't believe it's not no 1:3 return on a consistent basis. Just my thoughts
 

FXX

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Oct 12, 2017
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#21
I never have my targets hit because I have a very complex management to trades that is dynamic and not like the trade before. Its not only saved me from losses but is without doubt responsible for my account having such a smooth equity curve. This is my 13 week old account but would have a healthy 160% if I didn't have to change broker.
 

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Sep 9, 2010
41
1
18
Compton, Ca.
#22
I never have my targets hit because I have a very complex management to trades that is dynamic and not like the trade before. Its not only saved me from losses but is without doubt responsible for my account having such a smooth equity curve. This is my 13 week old account but would have a healthy 160% if I didn't have to change broker.
What is your average R:R per trade?
 

tomorton

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Feb 28, 2002
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#23
What is your average R:R per trade?

I'm going to hazard a guess its less than 1:1. I go along with the view that people quoting I get r:r 1:3 or you must absolutely always get at least r:r 1:3 is just talk.

Inverse r:r is not a death sentence for an account, it depends how you trade it. If you can do it, r:r 1:0.5 works. The issue is to not often get the r of 1 but to always get the r of 0.5.......
 
Sep 9, 2010
41
1
18
Compton, Ca.
#24
I'm going to hazard a guess its less than 1:1. I go along with the view that people quoting I get r:r 1:3 or you must absolutely always get at least r:r 1:3 is just talk.

Inverse r:r is not a death sentence for an account, it depends how you trade it. If you can do it, r:r 1:0.5 works. The issue is to not often get the r of 1 but to always get the r of 0.5.......
If I can get 1:1 on a consistent basis that is fine with me.
 
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FXX

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Oct 12, 2017
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#25
Risk reward is a concept I find incompatible with the market. You have no idea how much the market can give you at any opportunity. Its a waste of time and an account killer because of the rigidity it imposes. I manage trades dynamically which oddly includes price action and time. It's odd because I don't use charts to find trades. If I had a risk reward concept in my trading it would make me want to hold out for the target and that would have resulted in many winners turning into losers or break even and that would reduce my monthly gains and also reduce my 80% success rate. Everyone is obviously different and this is probably
incompatible with other traders approaches. You have to find what works for you, it's not a case of applying a standard approach to this. I suggest observation and experimentation with iterations.
 

tomorton

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Feb 28, 2002
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#26
Risk reward is a concept I find incompatible with the market. You have no idea how much the market can give you at any opportunity. Its a waste of time and an account killer because of the rigidity it imposes. I manage trades dynamically which oddly includes price action and time. It's odd because I don't use charts to find trades. If I had a risk reward concept in my trading it would make me want to hold out for the target and that would have resulted in many winners turning into losers or break even and that would reduce my monthly gains and also reduce my 80% success rate. Everyone is obviously different and this is probably
incompatible with other traders approaches. You have to find what works for you, it's not a case of applying a standard approach to this. I suggest observation and experimentation with iterations.


This is good guidance and goes against what most trainers will say, so that is a plus also.

I always disregard resistance when taking a long trade in an uptrend and support when shorting a downtrend. It makes no sense to get out of a trade which is now, on dynamic TA assessment, more likely to succeed than it was when you enter, even if an s/r level is dead ahead.

On the other side I am now finding I exit weak trades way before the stop is hit, just on deteriorating TA. You have to picture in an objective way what a developing position will look like (and in this regard its a shame that charting programmes don't allow us to draw in projected future lines and candlesticks: that would be useful).
 

FXX

Well-known member
Oct 12, 2017
1,102
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#27
This is good guidance and goes against what most trainers will say, so that is a plus also.

I always disregard resistance when taking a long trade in an uptrend and support when shorting a downtrend. It makes no sense to get out of a trade which is now, on dynamic TA assessment, more likely to succeed than it was when you enter, even if an s/r level is dead ahead.

On the other side I am now finding I exit weak trades way before the stop is hit, just on deteriorating TA. You have to picture in an objective way what a developing position will look like (and in this regard its a shame that charting programmes don't allow us to draw in projected future lines and candlesticks: that would be useful).
I am the same when exiting a trade. I have a time element and also if price hangs about in one spot for too long struggling to break through I am gone like the wind. Essentially, like you, I am actively watching for the market to show me the trade is done.

Things I use to manage trades

-News and sentiment
-Time in session
-Time in trade (i have a 20 minute rule if it doesn't do anything within that time I am out)
-Price action at levels which also includes time. The longer it sits at a level the greater the chance of the trade failing

All of it dynamic and no 2 trades are alike with regards to management. This approach has saved me more times than price has followed through to a level where I would have gained greater profit. All I care about is consistently taking small nibbles with some home runs here and there. People don't realise how quickly they add up. I am consistently pulling out 10 to 15 percent a month which looks something like this (abbreviated)

0.1%
0.4%
0.6%
0%
0.2%
1%
0.3%
0%
0%
0.6%
0.1%

Etc.

Notice there are no risk reward typical achievements here. This is the whole risk 1 to make 3 blown out of the water proof that it's all nonsense. Guaranteed if I held out for that I would end up the month with hardly any gain or at a loss.
 
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