# Stop Loss and taking profit



## Peter2047 (28 August 2012)

Hi All,

I would like to seek comment from experts here. I follow this method. 
1. Cut loss if price drop 10% below my cost.
2. Take profit if price pull back from peak.
% gain  pull back  take profit
10%      3%          7%
20%      5%          15%
30%      9%          21%

This is the chart.



Please help comment if this an effective approach. Any improvement ?
Thanks in advance.


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## Peter2047 (1 September 2012)

Judging from the respond, I think this may not be an appropriate topic. 
My apology.


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## wombat40 (1 September 2012)

What the heck are you on? Let me know, i want some...lol


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## Joules MM1 (1 September 2012)

Peter2047 said:


> Judging from the respond, I think this may not be an appropriate topic.
> My apology.




real life examples get a productive response.......different to theoretical and philosophic ideas.....at some point you have to get to "this is where i entered and this is where i closed" and "i entered here because, i closed here because" .....so try that route next.......

two accounts compete for price, it's an auction, nothing theoretical, nothing linear, just an auction.....


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## Peter2047 (2 September 2012)

Joules MM1 said:


> real life examples get a productive response.......different to theoretical and philosophic ideas.....at some point you have to get to "this is where i entered and this is where i closed" and "i entered here because, i closed here because" .....so try that route next.......
> 
> two accounts compete for price, it's an auction, nothing theoretical, nothing linear, just an auction.....




Here is the real example of my trade on XLF.
Ticker	XLF
Buy Date	19-Feb-12
Buy price	14.07
Exit Date	27-Aug-12
Exit price	15.13
% gain	7.5%
Peak	15.98
Max gain	13.6%
% pull back	-6.0%

I suppose there is no best answer for the "% of pull back from peak".
Based on the chart, I should exit at -3%.


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