I went through the posts in your Three Set Ups thread (at least two times). Used my strategies to analyze the past few months' results. Have to consider risk/reward ratio. PT/SL @12/16 combo (even 16/16) seems quite profitable (based on historical performance). I'm quite comfy with SL 16 (though I'm aware of the suggested SL is 1 tick above or below the Inside bar).
Having said that, I will consider PT 8 in my future trades esp afternoon ones or immediately before/after news. Thanks again Jeff.
I'm not necessarily suggesting 8 be your first target.......I am suggesting that taking early profits and reducing risk is a good idea. What I happen to be doing may or may not be optimal........but I do know that stops must be market driven not arbitrarily determined. Also, I understand that a one contract approach is difficult. Just my 2 cents worth.
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Thanks Jeff for sharing your 2 cents worth with me!
I am doing 1-contract trades at least for the first 2-3 weeks (just started last week). PT/SL @8/20+ combo is quite challenging for my psyche .. sigh .. I love to have PT 8 gets hit within seconds .. scalping style suits me .. maybe my petite heart will soon get bigger ..
Not to be preachy, and I'm not specifically addressing you Jeff, but if you (readers out there) are in a trade and you're worried/stressed about taking a loss then you probably shouldn't be in the trade in the first place. Or perhaps you should take trades with less risk to the point that they don't cause stress.
It's just 1 trade.
When you enter a trade imagine writing a check to the market and be OK with it as a cost of doing business. If it comes back with some profit on top then great. If not, oh well, maybe next time.
Again, it's just 1 trade.
I used to trade larger position sizes until I got it down to a level that I'm comfortable with a full loss before I enter the trade. Even if I have 3 or 4 consecutive losses in one day, I won't be happy but I'll be OK with it because I'm confident I will get it back and I won't have blown out my account.
Once you can get over this, then you can start going for larger targets, which is often more profitable.
I haven't read all of Market Wizards but I don't think any of those guys are scalpers, are they? Darvas? Livermore? They all made their fortunes on the big moves.
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I don't want to side track Beths thread but...........there are different ways to skin a cat......you don't need big moves to be a big success. It's just like a store that can either sell a few items at a large cost or a lot of items at a small cost......they both end up the same place.
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