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Help, what should I do here?


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Help, what should I do here?

  #1 (permalink)
ImActuallyStupid
Dallas, TX
 
Posts: 14 since Feb 2021
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What should I do here? Take my losses?


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  #2 (permalink)
 
bobwest's Avatar
 bobwest 
Western Florida
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ImActuallyStupid View Post
What should I do here? Take my losses?


Well, let me make a couple of points.

1. Sorry, but I can't tell what your position is or what your losses are from the chart. Too much is smashed too close together. Some kind of summary would help. It looks like you may be long now from the last Buy, and if so, you seem to have about a 70-point loss or so in that one Buy. It also looks like there is not much reason to think it will turn around right now. It might, of course, but why not sell now? You would either be right or wrong, but if it keeps going down and you keep holding, you will be very wrong.

2. I general, it is usually best to take losses at some pre-defined point, and fairly early, such as when you would have good reason to think your trade idea is wrong. In any case, to survive in trading, you will have to take your losses before they get too large. These points mean that most people should have a stop loss order in at the same time they enter a trade, and that the stop loss should be based on some combination of having a meaningful chart reason as well as not exceeding a dollar amount that you cannot withstand. Taking losses quickly will not always work, which is a true bummer.... sometimes you will close out just as the market turns around without you. But then there will a time when the loss completely blows up your account, if you have not already limited it.

3. If you're going to make a lot of these isolated posts with trading questions, it would be a better idea if you open a trading journal in the Trading Journal section, post your trades there regularly with enough detail so people can give some feedback, and use the journal to get comment and feedback. It will also help you stay organized and let you review your trades better.

You may have noticed that I didn't really answer your exact question, and I can't, except about your last Buy. I would close that puppy right now without a thought about what might happen next. It would have been better to close it sooner, but it is not a good idea to stay in it now, based on hope. Hope kills accounts.

I also think you may be overtrading. I can't tell from the chart what you did in that congested area in the middle, but it sure looks like a lot of trades. Did they all work out? Also, remember the reality of commissions, which do add up even if your trades are winning.

I would take the suggestion to open a journal seriously, but of course it's up to you. I would not expect to get a lot of replies to a lot of disconnected questions about trades that you keep posting one at a time, however.

I hope I've said something that has some value to you. Good luck.

Bob.

When one door closes, another opens.
-- Cervantes, Don Quixote
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  #3 (permalink)
 
Rrrracer's Avatar
 Rrrracer 
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^^^ This is all very, very good advice.

Is the original premise of the trade invalid? Then close it. You'll be kicking yourself if it does come back, but you'll really be kicking yourself if it lands a serious blow on your account, or worse.

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  #4 (permalink)
 GFIs1 
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ImActuallyStupid View Post
What should I do here? Take my losses?


Hi
My answer on your question here:
From the viewpoint of the chart the price is forming the last part of a "W".
That means price is going up form the last point given.
As you went in long too early - this price might be still getting above your entry
just in the region it was first when forming the "W" - region 13540.
SO - either buy again lower (longs) or wait for the development with close stops
underneath the running price.

Good trades
GFIs1

PS: will you show us the chart development from there? Thanks

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  #5 (permalink)
 
Daytrader999's Avatar
 Daytrader999 
Ilsede, Germany
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bobwest View Post
In general, it is usually best to take losses at some pre-defined point, and fairly early, such as when you would have good reason to think your trade idea is wrong. In any case, to survive in trading, you will have to take your losses before they get too large. These points mean that most people should have a stop loss order in at the same time they enter a trade, and that the stop loss should be based on some combination of having a meaningful chart reason as well as not exceeding a dollar amount that you cannot withstand. Taking losses quickly will not always work, which is a true bummer.... sometimes you will close out just as the market turns around without you. But then there will a time when the loss completely blows up your account, if you have not already limited it.

I would close that puppy right now without a thought about what might happen next. It would have been better to close it sooner, but it is not a good idea to stay in it now, based on hope. Hope kills accounts.


@ImActuallyStupid:

From my own (painful) experience, these bullet points really are the best advice you can get....

"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
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  #6 (permalink)
 
SBtrader82's Avatar
 SBtrader82   is a Vendor
 
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I will not tell you what to do because I can't understand the image you posted, but let me give my perspective:

The difference between having a position on and exiting the position and re-entering at the same price is the commission cost. Since you are trading MNQ the commission is around 1,40 USD per contract (round turn) so let's say that you have 10 contracts, the difference between thinking about the market with a cold head and taking a rational trade and suffering in a loss is 14USD.

So, if you are in a loss think that independently if you close the position or not, you are already in a loss....sorry, I don't know how to express this any better. I mean that the loss is already there, whether you close or not, also the opportunity to re-enter it's always there and the cost is only 1,40USD per contract.

Another thing to consider is that there are many "degrees of freedom" between closing everything and keeping the position open... for instance you can reduce size: sell one contract, or two , or three.
You can close a couple of contracts and notice how you feel, take a rational standpoint and maybe re-enter.

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  #7 (permalink)
 
Daytrader999's Avatar
 Daytrader999 
Ilsede, Germany
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...Since the OP doesn't respond to our posts, I think he should be around break even now if he's still holding....

Talking especially about NQ, IMHO this example shows that you can do this kind of trades only if your pockets are deep enough...and given the fact that we're talking about one contract of MNQ, the possible loss (according to yesterday's levels) should be no big deal....

"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
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  #8 (permalink)
ImActuallyStupid
Dallas, TX
 
Posts: 14 since Feb 2021
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Thanks Received: 7

I do appreciate the replies and advice, I'm just trying to soak it all in.
I actually got caught up in being unable to close it because some pre-market error message, and it wouldn't let me close.
So learned a nice sweet lesson there.

I actually just found out that when I was switching my chart to another index, the instrument wasn't changing on my Entry window.

So for a long time, I was sitting there buying/selling on the MNQ while I was watching the MES.
That's why I had accelerated loss and I was getting confused as to why my markers weren't showing up.


At this point I'm down from $400 to $100.
I'm back on my simulator account, waiting to learn some more and practice before I try and help pay for childcare.

Thanks

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  #9 (permalink)
 
AllSeeker's Avatar
 AllSeeker 
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Okay, I wasn't planning to post but now I can't really ignore what I just read.


Quoting 
...learn some more and practice before I try and help pay for childcare.

I sincerely hope you are not planning to use trading as income source to pay for that. By the time trading starts paying, your child might have grown to the point where there might not be any need for childcare anymore.

This is a terrible idea. Please reconsider.

I do not mean to be harsh, just can't ignore the possible tragic consequences related to other person, who might suffer due to your choice here.

You can trade if you want but only with spare money which you are okay with losing. Not when you are cash strapped enough to worry about other responsibilities.

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  #10 (permalink)
 
Daytrader999's Avatar
 Daytrader999 
Ilsede, Germany
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ImActuallyStupid View Post
I actually just found out that when I was switching my chart to another index, the instrument wasn't changing on my Entry window.

So for a long time, I was sitting there buying/selling on the MNQ while I was watching the MES.
That's why I had accelerated loss and I was getting confused as to why my markers weren't showing up.


I fully agree with @LastDino, and please take as an additional advice that you never ever should change your trading chart to another instrument while in a trade.

This may lead to some surprising and quite unexpected / unpredictable results, which usually aren't very funny at all.

"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." - Jim Rohn
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Last Updated on February 10, 2021


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