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TRADING QUESTION ANSWERED by Mr DEV, entry and exits


"This was a good question I thought was worth addressing again as it's often taken for granted but is so important to ones psychology when trading. Speaking of psychology how many times do you stop to analyze your own psychology? It's just as important to asses ones frame of mind before trading as it is the charts.
Mr Dev "

"I have been on this forum following you for a while. If you might be able to spare a moment, and have the inclination, I would like to ask a question please. Can you please tell me how you enter and exit your trades - not looking for any proprietary information - just interested in percentile of planned trade funds. Like you (I believe), I typically only use one ETF, and recently have been mimicking your RUT choice.

What percentage of your planned trading funds do you use for your entry, and how do you usually split it up? The same question goes for exits. I sense from your posts that you enter your trades in what looks like two entries, and it appears also that you exit in a similar sequence.

I realize that obviously every trade is different, but if you have a pattern that works for you I would really appreciate knowing; again if you have the time and inclination. Otherwise, thank you for reading this anyway. I fully realize we are all very busy in this world (I know I am), and will not question any inability to respond.

Thank you in advance for the consideration, regardless. And thanks for your continued posting! Best wishes."

"I think a good first entry is often 30%, the second would 50% of the balance and then third 100% to equal all in. Reasoning most traders have terrible timing on a swing basis, this acts as a filter for that. Exiting can be much different. I think with big gains a 50 or 70% exit strategy is a good one followed by 100%. The reason is most traders give back much of their gains holding longer than they should.

Some traders can also exit too early leaving a lot of money on the table for what would of been a bigger winning trade, although it is a different timing issue that should be based on the charts this strategy is helpful here as well.

I like to be early so this strategy works for my plan going in, getting out, and reversing at or about the same time to capture most of the tradable swings moves. "

http://www.traders-talk.com/mb2/index.php?showtopic=121859