Taking Profit
"POP: My trade programs allow me to take profits after three adds upon a third wave of movement. The third wave usually is the strongest, and that is where I get out of the elevator on the 14th floor rather than ride to the 18th floor if it seems to move rather fast.
I know it is going to stop eventually. The only question in traders' minds, I think, is do we get out at the 14th floor on the way up or the way down."
"Having all the answers is still an incomplete process in trading. Often in trading we know the logical answer but don't know the intuition answer. There are situations in trading when we don't want to take the logical answer but the intuition answer. To know which answer to take is the most difficult decision for most traders. I believe at least 90% of the traders lose money and that close to 80% of traders are logical in their trading and not intuitive. What do you now see about trading? Wouldn't you now look more at the intuition side of trading and do more research on intuition?"
Interesting.
"You don't want to chase the market, but you don't want to miss it either. So your two plans cover all the bases with your input of market characteristics. If each day the market tends to give you a range of, say, 15 points, then you surely must be cautious when the market is already up 15 ticks. But only be cautious for a short period of time. Don't miss the move and use your "at the market" plan after a period of time. Sort of like a stop and I must say the best use of stops I know".
Trading isn't an impossible road but a lonely one, because you can't assist people when you're changing your mind six times a day. No expert trader can convey confidence to their customers by being so changeable, but they need that flexibility. That's why it's a solo affair, mostly.
You must have the courage to do what is correct at all times. Giving advice, and trading are conflicting endeavours. Most new traders are better off without the conflict of advice. (!) uh-oh
We must always have the the latitude to change positions based on our systems.
Locals (pro traders) are good at taking the smallest possible losses and going with the flow. That is their advantage over public (retail) traders.
"To understand why markets act as a system that tends to prove the most people wrong in any one day is a good start in correcting bad entries when trading. Traders are correct in thinking that the stops will get them out, and then the market will just turn around and go the way they had thought prior to being stopped out. The fact that it happens is reason enough to devise your trading plan accordingly. This idea is especially useful upon planning entries. I never really liked stops but trading off-floor creates a problem for the public because they certainly need protection from being hurt from extreme moves."
Stops don't work in choppy markets.
"We proceed with a trading plan after we feel our behavior and reaction to market conditions is in our total control. As long as we are prepared for any outcome and adapt our behavior to all possibilities, we can start to follow a good system."
"POP: My trade programs allow me to take profits after three adds upon a third wave of movement. The third wave usually is the strongest, and that is where I get out of the elevator on the 14th floor rather than ride to the 18th floor if it seems to move rather fast.
I know it is going to stop eventually. The only question in traders' minds, I think, is do we get out at the 14th floor on the way up or the way down."
"Having all the answers is still an incomplete process in trading. Often in trading we know the logical answer but don't know the intuition answer. There are situations in trading when we don't want to take the logical answer but the intuition answer. To know which answer to take is the most difficult decision for most traders. I believe at least 90% of the traders lose money and that close to 80% of traders are logical in their trading and not intuitive. What do you now see about trading? Wouldn't you now look more at the intuition side of trading and do more research on intuition?"
Interesting.
"You don't want to chase the market, but you don't want to miss it either. So your two plans cover all the bases with your input of market characteristics. If each day the market tends to give you a range of, say, 15 points, then you surely must be cautious when the market is already up 15 ticks. But only be cautious for a short period of time. Don't miss the move and use your "at the market" plan after a period of time. Sort of like a stop and I must say the best use of stops I know".
Trading isn't an impossible road but a lonely one, because you can't assist people when you're changing your mind six times a day. No expert trader can convey confidence to their customers by being so changeable, but they need that flexibility. That's why it's a solo affair, mostly.
You must have the courage to do what is correct at all times. Giving advice, and trading are conflicting endeavours. Most new traders are better off without the conflict of advice. (!) uh-oh
We must always have the the latitude to change positions based on our systems.
Locals (pro traders) are good at taking the smallest possible losses and going with the flow. That is their advantage over public (retail) traders.
"To understand why markets act as a system that tends to prove the most people wrong in any one day is a good start in correcting bad entries when trading. Traders are correct in thinking that the stops will get them out, and then the market will just turn around and go the way they had thought prior to being stopped out. The fact that it happens is reason enough to devise your trading plan accordingly. This idea is especially useful upon planning entries. I never really liked stops but trading off-floor creates a problem for the public because they certainly need protection from being hurt from extreme moves."
Stops don't work in choppy markets.
"We proceed with a trading plan after we feel our behavior and reaction to market conditions is in our total control. As long as we are prepared for any outcome and adapt our behavior to all possibilities, we can start to follow a good system."
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