Understanding when to Exit is the toughest Aspect of trading and THE holy grail of tradingOriginally Posted by ;
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Understanding when to Exit is the toughest Aspect of trading and THE holy grail of trading
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Interesting Idea. I would love to see and read more.
My perspective is different. I think you need to determine that point where you know you are wrong. Consequently, if you have identified the point where you know you are incorrect, why do you scale out earlier said stage? would you stay beyond that point in the trade, but using a position size?
Again, I am not saying I am right, and you are wrong. I am saying tell me about your standpoint, since I'm always keen to learn new things to increase my trading...
However, I agree. I have had many instances of getting entrances via limit orders - using way out or pivot points at time levels, simply to forego the trade for a much smaller profit than I could have had. I also think knowing what pairs to trade. After trading gold once I really can't take action in my loion, Honolulu, without a sense of dread since the time zone prevents being around in the times with the most volatility I am more relaxed by way with entrances on crosses, somewhat avoiding the dollar. The money does not matter at this point but the satisfaction that I get with doing things right and achievement to me personally. Great thread idea.
you merely sold at Service when buy orders were triggered...2 approaches to deal with it
1st wait for S to break then retest of broken S in case you have to market....Or await pullback from S to R to market again....this what happened precisely in AUDUSD that day....but you might be trading lower time frame forgetting higher.... And that was happened your entrance was only near daily S.....
see charts here
buy at resistance and market at support....don't try this at home
I think losing commerce mostly===========bad entry
Can you see it any other way ? Like bad stop for example....bad money direction or what????? And why it was bad is that the question
No offense to anyone, but I have doubts concerning the aforementioned premise. A few reasons:
#1. To whatever extent trading is a game of probabilities, you can't expect to learn in the consequence of any single trade, but merely by analyzing the results over a sufficiently large database of 'similar' trades.
#2. If you are a system trader, then a reduction isn't necessarily a bad trade; rather, a trade in which you neglected to follow your rules is a poor trade, regardless of its result. By way of example, if cutting your losses fast is one of your rules, but you don't do so, and also the trade subsequently turns around and becomes a big winner, that is still a 'poor' trade. The single lesson to be heard is to keep to cut your losses, even though the outcome demoned otherwise!
#3. If conversely, you are a discretionary trader, then neglecting to predict the market direction properly does not necessarily signify a 'poor' trade. Nobody can possibly expect what new orders will arrive in the market after they've opened a trade. Some wisdom from :#4. Unless you may understand WHY the market acted as it did, there's not anything meaningful you could learn from a reduction. Supposing, by way of example, your rules state that you should buy after price bounces up from a specified trendline, and you do so. However, price subsequently turns, breaks through your trendline and plummets downward. Unless you understand the underlying reason behind the downturn -- and also in a way that may also be recognised in future situations -- then the only valid conclusion you can draw is that price does not respect (your) trendlines 100 percent of the time (topherhk88 explains it nicely here).... Each of that brings us back to point #1...
Valid points. I believe that the value will probably be where traders are making mistakes. A trader could have the ability to discern if it was. But might also show flaws in the traders plogy, system or methodology. This will increase confidence in the noob trader.
What's the WHY for day traders ?
Indeed, that's a good question!
Perhaps I ought to have said Until you understand why the market behaved as it did -- assuming that is even possible -- there isn't anything meaningful ....
But I think that the ultimate 'why' is all about the quantities of bids and offers at each given degree -- after all, that's what causes price to rise and collapse -- but of course the problem is these can not be known with absolute precision in a decentralised market (and certainly not by the retail trader); and also they're eternally changing, as orders get added/deleted.
Or, if you want a different standpoint, I recorded a range of different reasons in (the next paragraph) here also here and here. These aren't necessarily reasons 'why', but a number of them are able to potentially get you one step closer to the way that bank/institutional traders believe and operate. I am still quite a novice when it comes to institutional methods.
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