Dump it Here

[Skate]

Trading results
With permission, I'm delighted to share the trading results of one of my three sons, who started a new strategy at the beginning of this calendar year. He understands that trading success doesn't come overnight and that his results will be subject to market volatility. Despite this, he's found it challenging to cope with the ups and downs of his journey.

I'm proud of his dedication and willingness to learn from his experiences. As a trader, it's essential to acknowledge and address the emotional aspects of trading, as they can significantly impact our decision-making and overall performance.

Below are his trading results since the beginning of the year. While they may not be spectacular, they do show a commitment to learning and improving.



As a parent
I'm excited to see his progress and growth as a trader. It's also rewarding to see my son take on new challenges and work towards his goals. I'm grateful for the opportunity to share his journey with you and hope that it may inspire others to pursue their passions and interests, even in the face of adversity.

Skate.

 

[Skate]

When trading seems tough
We know that trading can be tough sometimes, especially when the markets are volatile or unpredictable. It's easy to feel overwhelmed and frustrated when things aren't going our way. But here's a reminder that can help us all keep things in perspective as there's always someone out there who's doing it tougher than we are.



Skate.

 

[Captain_Chaza]

With due respect
What a lot of Bull-tish
I have never heard of anything so foolish and downright dangerous as the TakeProfitStop

To me it is a recipe for disaster

My advice is to delete the whole concept and throw it overboard ASAP

It makes no mathematical sense in any form of Gambling IMHO

Salute and Stay safe

 

[Skate]

With due respect, What a lot of Bull-tish
I have never heard of anything so foolish and downright dangerous as the TakeProfitStop. To me it is a recipe for disaster. My advice is to delete the whole concept and throw it overboard ASAP. It makes no mathematical sense in any form of Gambling IMHO

@Captain_Chaza, thank you for sharing your concerns about the "TakeProfitStop" exit strategy. I appreciate your willingness to share your opinion but immediately dismissing the concept may not be the most effective way to engage.

I have provided supporting information to illustrate my perspective, and I believe it's important to approach alternative ideas with an open mind. Different strategies work for different people, and what may seem foolish or dangerous to one person may actually be a viable option for another.

Additionally, it's important to note that there are many different ways to approach trading, and no "one-size-fits-all" solution will work for everyone. By considering multiple perspectives and approaches, we can all learn and grow as traders.

Skate.

 

[Skate]

I employ a "TakeProfitStop" exit strategy to lock in profits at predefined levels. This approach allows me to maximise my gains while also minimising potential losses.

I have never heard of anything so foolish and downright dangerous as the TakeProfitStop

@Captain_Chaza, please take a moment to review the chart below
The chart displays the "TakeProfitStop" exit level, denoted by the green dash line, and the "TakeProfitStop" green arrow, which serves as the signal bar. Additionally, the yellow rectangle box highlights a situation where the momentum didn't follow through, resulting in the activation of a "StaleStop" exit and the opportunity to use funds more productively.

The old way of thinking
I'd like to share a brief commentary on the "old way of thinking" when it comes to trend trading. In the past, traders would often let their positions "run, crest, and exit" while sacrificing a significant portion of their open profits. Personally, I believe in taking a more proactive approach. When profits are available, I choose to bank them and don't let them slip away. This strategy doesn't mean the ride is over, instead, it's a matter of taking advantage of the opportunity and being flexible to re-enter the market when conditions are favourable. As I mentioned in a previous post, jumping off the ride and jumping back on "can have its benefits".




Skate.

 

[Skate]

I have never heard of anything so foolish and downright dangerous as the TakeProfitStop.

@Captain_Chaza, before I finish, I'd like to highlight that risk management is a crucial aspect of trading, and many traders use "take-profit stops" in conjunction with a trailing stop to mitigate potential losses. However, I prefer to take a more dynamic approach by incorporating a "Stale Stop" exit strategy into the mix. By using this combination of "exit strategies", I can maximise the efficiency of my trading capital, avoiding the pitfall of tying up my funds indefinitely. This allows me to stay agile and responsive to changing market conditions, enabling me to seize new opportunities as they arise.

Skate.

 

[ducati916]

that sounds like a million dollar question to me

especially as the average trader is encouraged to resist fear ( the urge to exit early ) and acquiring the skill of parsing the information glut ( much of which is delayed or inaccurate )

PS imo the question is important to ( active ) investors as well

cheers

Mr divs,

You can run a scoring system that provides you with a market outlook, daily, weekly, monthly...whatever you want.



Then you simply implement strategies that align with your scoring system.

Of course it helps if you have more than a single strategy: (a) long, (b) neutral and (c) short with timeframes to match your various outlooks.

jog on
duc

 

[Skate]

Below are all the raw signals from the "Exploration Analysis" (this week)
There are 6 signals but only one position is currently in the "Dual Breakout Strategy" portfolio. Theoretically, (TPW) would be placed in the pre-auction over the weekend at the offer price of ($5.76) to snag the opening price at the open on Tuesday as Monday is a holiday.

Tomorrow
Monday, the 2nd of October, 2023, the stock market will be open.

ASX Trading Hours & Market Holidays [2024-2025]

View 2024-2025 Australia Stock Exchange (ASX) Market Holidays, Trading Hours, Contact Information and more. ASX is open M-F, 10:00 am - 4:00 pm (AEDT).

www.tradinghours.com

Skate.

 

[Captain_Chaza]

With great respect Captain Skates , What I am Saying is

How did your TradeProfitStop work on the Lithium Sector
WC8 LKE LRS CXO PLS DLI etc etc etc

How did it work on my Magnificent 9 Uranium stocks just recently?
Assuming You got in when I got in ( Refer to my ships logs)

EG: Sailing the WC8 ---------------One WEEK at a Time

As they used to say in the Good Old Days
" If You Are On a GOOD Thing Stick to It"

Salute and Gods' speed

 

[Skate]

With great respect Captain Skates , What I am Saying is

How did your TradeProfitStop work on the Lithium Sector
WC8 LKE LRS CXO PLS DLI etc etc etc

How did it work on my Magnificent 9 Uranium stocks just recently?
Assuming You got in when I got in ( Refer to my ships logs)

EG: Sailing the WC8 ---------------One WEEK at a Time
View attachment 163278
As they used to say in the Good Old Days
" If You Are On a GOOD Thing Stick to It"

Salute and Gods' speed
View attachment 163279

@Captain_Chaza, I appreciate your scepticism towards using a "Take Profit Stop" in trading. While it may seem counterintuitive to limit potential gains, I respectfully disagree with your viewpoint.

A "Take Profit Stop" is a risk management technique that aims to lock in profits and prevent a winning trade from turning into a losing one. It's a way to take a step back and assess the trade, rather than getting caught up in the heat of the moment and risking more than you're comfortable with. In the context of the stocks you mentioned, WC8, LKE, LRS, CXO, PLS, and DLI, a "Take Profit Stop" could have helped to limit potential losses if the stocks didn't perform as expected.

In the case of your "Magnificent 9 Uranium stocks," a "Take Profit Stop" could have helped to protect your profits in case the stocks didn't continue to rise as expected. It's important to remember that no trading strategy is foolproof, and there's always a risk of missing out on potential gains. However, a "Take Profit Stop" can be a valuable tool in a trader's arsenal, providing a way to manage risk and ensure that profits are locked in.

I understand that some traders may dismiss the idea of locking in profits, but I believe that it's important to consider the potential benefits of a "Take Profit Stop" in certain situations. By using this technique, traders can avoid getting caught up in the emotional rollercoaster of trading and make more informed decisions about their trades.

I've provided a thorough explanation and demonstration of one of my exit strategies, and while some may acknowledge the logical reasoning behind it, others may reject the concept of locking in profits due to their inherent resistance to new ideas.

Skate.

 

[Skate]

" If You Are On a GOOD Thing Stick to It"

When do you exit a position?
When it comes to trading, one of the most critical decisions is knowing when to exit a position. Exit too early, and you may miss out on potential profits, hold it too long, and you risk giving back a significant portion of your open capital. To address this challenge, consider using a combination of exit strategies to help you confidently navigate the exit process. Using this approach can help you achieve better trading outcomes by maximising your profits and minimising your losses based on predefined rules.

The "Dual Breakout Strategy"
The chart below is for (ASXYL) , currently a position held in the "Dual Breakout Portfolio". I'm curious when @Captain_Chaza would exit this trade. I would appreciate any insights or feedback from @Captain_Chaza on the exit strategy for this position.



Skate.

 

[Skate]

I'm curious when @Captain_Chaza would exit this trade. (see the previous post)

In the meanwhile
Let me explain how the "Dual Breakout Strategy" is programmed to exit this trade.

1. "Take Profit Stop"
A predefined profit target is set, and the trade is closed once it's reached. This locks in your profits and helps you avoid holding onto a position for too long. As indicated by the "Aqua" dashed line on the price chart, the "Take Profit Stop" is set at $1.33495.



Skate.

 

[Skate]

2. "Trailing Stop"
The trailing stop adjusts to the price movement, allowing you to maximise your profits while limiting potential losses. As the price moves in your favour, the "trailing stop" moves with it, locking in your gains. The colour of the line changes from "Red" to "Pink," providing a visual indicator of when trading is still optimal and when it's not. If the close is below the current price of $1.2555, the position will exit, locking in profits. This strategy helps you stay in the trade for as long as possible while minimising the risk of significant losses.



Skate.

 

[Skate]

I'm curious when @Captain_Chaza would exit this trade. I would appreciate any insights or feedback from @Captain_Chaza on the exit strategy for this position.

The price Chart of (DYL)
At 12 noon just an hour later (DYL) the closing price has just moved above the "Take Profit Stop" noting to exit the position. Also, the Exploration analysis displays this signal to exit.




Exploration Analysis Signals
Confirmation of the "Take Profit Stop"



Skate.

 

[Skate]

3. "Stale Stop"
Finally, a time-based stop (StaleStop) is another factor that is well worth considering, as it can help you avoid holding onto a position for too long. A time-based stop is a rule that closes your position after a certain period of time once the position stagnates. This can be useful if a position fails to follow through and remains stagnant or volatile. You are better off applying your capital to the next available position that has more potential for profit.

Chart of (BVS)
The position has been in the "Dual Breakout Strategy" for 10 weeks, but unfortunately, it has stagnated after the breakout. My thinking is, why hold onto this position and hope for a recovery when it's not showing any signs of improvement?

Exploration analysis
Holding onto (BVS) a stagnant position for too long can quickly turn a profitable trade into a losing one.



Skate.

 

[Skate]

When do you exit a position?
When it comes to trading, one of the most critical decisions is knowing when to exit a position. Exit too early, and you may miss out on potential profits, hold it too long, and you risk giving back a significant portion of your open capital.

Before I hop off the "soapbox"
In conclusion, exiting a position is a critical decision that requires careful consideration. Relying solely on personal judgment can be an expensive mistake. Instead, I use a combination of exit strategies, as demonstrated above, to take the emotion out of trading and make decisions based on predefined rules. These strategies work in my best interest by deciding when a position has run its course, maximising profits, and minimising losses. By using a combination of a "Take Profit Stop," "Stale Stop," and a "Trailing Stop," I ensure better trading outcomes.

Time to hop off the soapbox now
I've made my point and shared my approach to exiting positions using a combination of exit strategies. It's important to remember that personal judgment can be misleading, and relying on predefined rules can help minimise emotions and optimise trading outcomes. I hope this information helps in your trading journey.


Skate.

 

[Skate]

This short "58-second" video is a must-watch for everyone
In this clip, they talk about an experiment conducted on a group of women who think they have scars on their faces and how they felt about the interview they just had.



Skate.

 

[DrBourse]

Before I hop off the "soapbox"
In conclusion, exiting a position is a critical decision that requires careful consideration. Relying solely on personal judgment can be an expensive mistake. Instead, I use a combination of exit strategies, as demonstrated above, to take the emotion out of trading and make decisions based on predefined rules. These strategies work in my best interest by deciding when a position has run its course, maximising profits, and minimising losses. By using a combination of a "Take Profit Stop," "Stale Stop," and a "Trailing Stop," I ensure better trading outcomes.

Time to hop off the soapbox now
I've made my point and shared my approach to exiting positions using a combination of exit strategies. It's important to remember that personal judgment can be misleading, and relying on predefined rules can help minimise emotions and optimise trading outcomes. I hope this information helps in your trading journey.

View attachment 163308
Skate.

Hi Skate…

Thought I would add my ‘contrarian’ thoughts on the “Stop Loss” conversation…

IMO, Traders should not get too involved with Stop Loss points - I do not use a Conventionally Accepted Stop Loss or Trailing Stop Loss System….

I feel that those systems belong to the Longer Term Investors….


Once I have, in my opinion, enough Signals/Signs from my Tools of Trade, I will act immediately….

For example, if a Bearish Candle Pattern and/or my Indicators suggest that a pullback or downtrend is imminent, I will follow those signals and exit the Trade immediately....


If I were to use a % Stop Loss System (of say 2%) and my Tools of Trade gave me enough signals to exit for say 0.5%, I would be crazy to hold and watch any small loss be increased just because that “% Stop Loss System” told me I had to wait till my losses reached that magical 2% - it would be easier to just give some money away....

Admittedly I sometimes exit a trade early – but I prefer to be cautious – and if my Tools of Trade suggest continued uptrend then I can easily re-enter the Trade....


The idea is to trade when there is a trade to be made, and even then you should 'Play the Trade' (like playing a Fish), you should not trade the $$$'s - get the trades right and the $$$'s will automatically follow.....


Most Traders use strict Stop Loss systems, I primarily use my Indicators as my initial Stop Loss System, when they turn Negative, I jump.

"You can assist whatever Stop Loss System you use by "Correct Stock Selection" & "Correct $$ Management" - for example - If you invest $50k in Penny Dreadful shares you will probably activate your Stop Loss System immediately, and if you are not quick enough you could lose the lot - On the other hand $50k invested in BHP shares would be a safer trade, less risk, probably less profit but better protection for your capital".

Cheers.

DrB.

 

[DaveTrade]

@DrBourse and @Skate , IMHO you are both doing the same thing with your exit strategies. I do this myself, much like @DrBourse using my indicators. The one point of difference is the 'Take Profit Stop', like the doc I only do this in a volatile thin market. It all comes down to the statistics of your trading method.

 

[Skate]

Hi Skate…

Thought I would add my ‘contrarian’ thoughts on the “Stop Loss” conversation…

@DrBourse and @Skate , IMHO you are both doing the same thing with your exit strategies. I do this myself, much like @DrBourse using my indicators. The one point of difference is the 'Take Profit Stop', like the doc I only do this in a volatile thin market. It all comes down to the statistics of your trading method.

Thanks @DaveTrade for your follow-up comment that supports @DrBourse's comments. However, I'd like to clarify that while we may share some similarities in our approach, there are also some differences. It's important to note that no single exit strategy is right for every trader or every trade. Each trader must find the approach that works best for them and their trading style. Some traders may prefer to use a combination of exit strategies, while others may prefer to use a single strategy that works best for them.

Ultimately, the choice of exit strategy will depend on a trader's individual preferences, risk tolerance, and trading style. While there is no one-size-fits-all approach, it's important to have a clear understanding of the different strategies available and to use that align with their risk management plan.

Overall, I appreciate when well-respected members share their thoughts and experiences in this thread. I hope that all traders can learn from each other and find the approaches that work best for them in their trading journey.

Skate.