Hopefully this post will clarify how I mark my entries and exits.
It's important to remember that the charts I post are a real time snap shot. They are not the end of day complete chart, but what is happening at the moment. SO where ever the price is as shown on the right side of the chart in white, is the price at that moment.
If I'm long I mark the entry with a red line. I'll mark a green line under that to note where my stop is.
So, some minutes later you can see that I've sold my SKF position and shown that by the green line which what I was using as my stop level line. I constantly adjust my stop line and move it up until I am ready to take profit and sell. Upper red line notes where I doubled up my position in SKF. Lower red line shows original entry level.
Here is a short entry as shown by the green line. The red line marked my stop.
Posts
6 comments:
I have been following you blog for some time. Excellent info, thank you for sharing. You are taking time to help people. Awesome. BTW I always thought your red/green lines were clear regarding what they meant.
+1
Here's the problem with us noobs to this style... We don't read the posts closely enough.
Joshua pointed out to me the other day that you put the line explanation up on the right side of the blog, trouble was, I was so busy reading the blogs, I forgot to read the right side "static info." Doh!
This is an excellent clarification though, thanks. Question now is how do you determine your stops? I know how you feel about the risk ratio stuff, so how do you plan your exit?
Thanks again for the blog, you're transforming my trading.
Groggy,
Stops and momentum go together . If I've read the momentum correctly, then the price is moving away from my stop. If I haven't read it right then I keep my losses light. .15-.35. Occasionally .60 - .80 if it's a fast mover.
For exits I'm looking for a slowing of or stalling out of the momentum. Nothing more. Reverse the trade at that time and run with it the other direction.
I think setting a profit target is one of the biggest mistakes a trader can make. I'll write a post in the future detailing the reasons why.
Thanks for sharing. I have a question about the entry. Taking the example of SKF entry. How do you time your entry? I normally would enter right after that long green bar and the last candle's tail would hit the stop. Do you put the stop in after the price move away?
Thanks,
John
JOhn,
I forgot what date that SKF trade was but typically I think I would have shorted the long downtrend, then covered and gone long then sold or got stopped out on that last upswing when it turned. In a case like that I'll be waiting for a sharp move down like that usually happens right before a new 5 minute candle appears, 4:40 - 4:55 on the clock and go long again. It happens many times s the MMs will try and fake you out.
Post a Comment