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Let your profits run?

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I don't look at support or resistance at all with a trailing stop, and depnding on what im doing at the time, not even with the initial stop.

It all depends how you are trading. If you are trading agressively the initial stop might be so tight that you have 25%+ of your total equity on the one position, or it might be so loose that you are only commiting 5% of capital to a trade.

It doesn't matter how you do it. There is no right or wrong trailing stop, it's not black and white. Just do whatever works for you. If you can't let go of much open profit, use a tighter stop. If you don't check your account every 5 seconds and are prepared to take whatever the market will give you, use a wider stop and ride the big trends.

The stop will ultimately determine the average length of your trades, so keep that in mind.
 
Perhaps some sort of psychological strategy for "holding" would be good? Eg:

1. Distract yourself when you want to "close". Say to yourself, "hold until later or tomorrow", depending on timeframe.

2. Do not get attached to the "profit" until trade = more mature?

3. Purely mechanical and set trailing stops. Doesn't matter if you get stopped out.
 
Your NEVER going to get a huge pay day taking small paydays.

There is only one answer to this.

You have to have as many possibilities in your portfolio as you can afford.(Compliments Nick Radge).
You have to hold winners and every now and again one or 2 will become pay dirt.
If you dont hold them then you'll NEVER be in the race.

You really dont know which one will become the next outlier move.
Cut the losers and hold those winners.
 
Some very good advice here. Another along the lines of what Aussiest has stated:

Try not to look at your account balance. Think of trading as a process. Its note about the P&L. Its about the process. Look after the process and the P&L will look after itself. The more you look at the account balance the more likely you're going to act on your positions because of your emotional stance.

1. Find a strategy that works
2. Validate it
3. Do it

When doing it just place the trades as required, amend the stops as required, close the computer and start again the next day.
 
SamLau said:
What would an experienced trader do?
Click to expand...

An experienced trader would have had their exit strategy completely planned out BEFORE they entered the position.

Trailing stops are good for riding big trends.
Time stops are good for quick momentum trades.
 
Julia said:
This is a contradictory statement.
Click to expand...

In retrospect, you're right

I think what I meant was that one should have rules for trading, but they needn't be completely inflexible, which is a "rule" I have tossed out.
 
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