miketranz
961 posts
msg #83724
- Ignore miketranz |
12/2/2009 10:16:38 AM
The easiest thing to do is enter a position.The hardest thing to do is exit.Why? Because the emotions of fear & greed take over rational thought.Something you will never experience paper trading,but what must be felt in real time,with real money.If you've been trading long enough,this might help.Have you ever noticed a certain dollar amount of profit,it could be any figure,that when hit,price & profits seem to reverse?Ever stay in a trade that was profitable and gave it all back plus?How about entering a position that's not profitable from the start?If your timing is really good and the trade takes off in the right direction,shoot for your average dollar amount of profit to exit the trade,regardless of any other factors.If you don't know what that figure is,go back over all your previous trades and find out.You can either set a limit order sell,or market order out.Limit order sell takes the emotion out of the trade.It's set,locked and loaded.On a position that's not profitable from entry,know where to draw the line on losses.Your downside loss should be half or less in dollar amounts,to your upside.Always enter a trade moving in,and through the direction you anticipate.Once a trade moves in the opposite direction,the odds against you increase rapidly.Proper money management,coupled with a good entry and exit strategy,is what it's all about.....
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