or Try an Advanced Search...

    Market Recap for Thursday, August 3, 2023

    Go to Market Recap for Thursday, August 3, 2023
    S

    SwingTradeBot over 1 year ago

    What are your thoughts on 'today's (2023-08-03) market action?

    0 Reply
    C

    Cos3 over 1 year ago

    i was waiting the results of Amazon and AAPL, probably like a lot of traders.  What is your favorite exit signal ? do you wait to hit your (trailing) stop loss or you watch reversal signs?

    0 Reply
    T

    TraderMike over 1 year ago

    BTW, I just added this -- Exiting Your Trades – What Works Best? -- to the featured articles section of the site & thought of you.  

    FWIW, I disagree with the author (who's an old friend of mine) on the value of trailing stops. But that's one of the things about trading, different things work for different people.  I also think my timeframe is a bit longer than Dave's.

    0 Reply
    T

    TraderMike over 1 year ago

    Yeah, not to mention waiting for the jobs report.

    I try my best to rely on trailing stops & taking partials profits.  For example, I get a 3 R-multiple gain and then sell half my position & let the rest ride with a trailing stop.  But there are plenty of reasons I'd just close a position, including:

    1. The stock quickly hits my initial price target, (which is usually the most recent high it's pulled back from) and I have concerns that it's not going to continue
    2. The stock has stalled and I'm tired of holding it.  
    3. Similar to #2, a time-based stop. (that could be a day-trade or something I don't want to hold over a weekend or through an economic report/Fed decision)
    4. I just have too many open positions and want to lighten up.
    5. I see some good, new setups and want to use the cash from an old position to get into the new one(s).
    In my long term (retirement account) I primarily rely on Chandelier Exits for newer positions and transition to the 50 DMA once I have a nice profit cushion.

    1 Reply
    C

    Cos3 over 1 year ago

    it's interesting to see your way to manage it.  The 3R multiple is not in our favor when we use the principle "the trend is your friend" but we can see specific targets in the trend with some candles or classic paterns.  I just go also trough the Chandelier Exits on the Stockcharts site you linked and they are using the ATR period of 22.  I've started 2 months ago to really use stop loss and get out a lot (my stop out list are better than my performances) so i rapidly increased to 3.5 ATR but on 14 days... a constant learning process !!

    0 Reply
    T

    TraderMike over 1 year ago

    My exits are definitely more art than science.  

    Note that the SwingTradeBot portfolios will calculate a Chandelier Exit for you based on a 14 day ATR. 

    And, yes, trading is definitely a constant learning process.  I think even systematic traders have to pay attention to changes in the market & potentially tweak things.

    0 Reply