Either lots of readers agree whole heartedly
OR
Lots of traders have had lightbulb moments.
The silence is deafening.
Everyone is waiting for the pictures Tech...
Oh I see visual confirmation.
They do in most of my automated systemsIn a Systematic approach there are fixed entry/exit and stops. These don't float.
This really is a gem and I bet most will not even think about it. Of course a lot more books are sold on telling traders what is "right"Its not about being right its about being profitable.
agreeIn a Discretionary trading method we have the ability to alter all 3
Entry/Exit and Stops. The single most important aspect of this form of trading---in my view.
Unlike a systematic approach we don't have to play trade after trade out to its known end.
We can move our Initial Stop. We can alter our entry and we can determine our exit with discretion.
To sit and wait for a stop to be hit as a stock reverses from well above---with clear signs of an impulse move
during a topping pattern or stage of the life of the chart---would be less than ideal.
Should a break-even trade even be considered a valid score in a Risk/Reward System ?
If you scratch a trade at break even (Zero R ) what you do next is take another trade, so in effect, within your system you have taken funds out of a Zero R, and placed it in the next trade, a 1R trade.
Thats sort of equivalent to having not taken the first trade.
I would suggest that THIS OBSERVATION is widely accepted by most here.Some people may consider if the original stop placement was justified as signalling a fail of the trade and that the entry was a suitable entry, why now is the entry point the place to signal a failed trade.
Why therefore, is not a 0.25 R or 0.5 R a better proposition than entering a new trade at 1 R ?
If you are not trying to be right, rather trying to be profitable, surely any risk less than you take for the next trade, remains a valid trade within the Risk/Reward System ?
I struggle with this concept, life was easier when trades were singular, since trading became a series of loops, deploying funds like employees in a business, it's become less simplistic...am glad others here have it sorted
Should a break-even trade even be considered a valid score in a Risk/Reward System ?
If you scratch a trade at break even (Zero R ) what you do next is take another trade, so in effect, within your system you have taken funds out of a Zero R, and placed it in the next trade, a 1R trade.
Thats sort of equivalent to having not taken the first trade.
I would suggest that THIS OBSERVATION is widely accepted by most here.Some people may consider if the original stop placement was justified as signalling a fail of the trade and that the entry was a suitable entry, why now is the entry point the place to signal a failed trade.
Why therefore, is not a 0.25 R or 0.5 R a better proposition than entering a new trade at 1 R ?
If you are not trying to be right, rather trying to be profitable, surely any risk less than you take for the next trade, remains a valid trade within the Risk/Reward System ?
I struggle with this concept, life was easier when trades were singular, since trading became a series of loops, deploying funds like employees in a business, it's become less simplistic...am glad others here have it sorted
Tech - In regards to your SWM chart
Your buy in date was Jan 16th
Buy in price was $1.86, why that price? Why not the top of the run up of Jan 10 or was it 1 cent above the first top bar of the first rush of momentum on the Jan 3?
What day did you move your stop loss to break even and the reason or if you have time the dates you moved all stops up and the reasons so I can see what makes you react and when.
On the Jan 21 we see a high finish with lower volume so does that mean no sellers? Same on Feb 1.
Very interested in seeing what your seeing and what makes you react on these days as the trade moves along.
SWM - I have spent a few hours reviewing your comments and this chart alone and the info you have passed on has been very beneficial so many thanks Tech and Pav.
Tech - In relation to your earlier post No:13,043 MTU Chart:
It broke out on the 10th April 2013
You waited for price to return to 5.14, why that price?
Were you looking for a lower risk entry?
If so, were you looking at trying to get in very near to the half way mark of this bar?
Or was the volume of this bar not that remarkable that made you think it might pull back a little before running up again.
I do understand you are waiting for a micro pattern of about 5 / 10 days to exist to achieve a low risk entry and is that the reason you waited for this to little pullback?
Thanks for any feedback ... Debtfree
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