This is entirely my view/experience as well - that is, if scaling-in means adding to already winning positions.
As a day trader my profit targets are generally in the order of 10-40 pips per trade, on average around 25 pips. But a reaction to a single statement from a prominent person can easily achieve a 30-40 pip reversal at any time without changing the underlying move in any way. This is somewhat irrelevant to a long term trader but life and death to a short term trade. And if I [I]were [/I]to scale-in, at which point would I do so? after 10 or 15 or 20 pips? This means increasing risk of sudden loss combined with a rather puny advantage of a few extra pips on the add-on positions.
On the other hand, I do agree with the idea of starting with a big position with tight stops and scaling out as the trade progesses. On the whóle I believe it is easier to pick a 10-pip move with 10 lots than a 100-pip move with 1 lot for the same end result. But this [I]really does [/I]require accurate entry levels…
Just goes to prove there is no free lunch in risk/reward…however the glove fits, wear it.
net profit of stradle/strangle trade on dow jones = +310 points
after several months of no movement the dow decided to go down and as we putted up a straddle/strangle trade 2 weeks ago on the trading range we did not care where the dow is going or when it is moving. now after 2 weeks of not caring, not looking, not thinking, not working, not putting any effort in -=not risking anything=- …= we have a profit of 310 points.
Hi TURBONero your chart red line says1297.84 and the blue line is 1304.04 what are those levels?
Are you waiting for price to hit there and then going long or are you in the trade? And sorry if Im being a noob but what makes you pick that price as your entry and target as your exit?
i am sorry for my late reply i am very bussy lately and barely manage to come to the forum.
at the blue line you go long. its the trade trigger. you can go long immediately when price touches the line or you wait for a confirmation (pinbar or engoulfind around that blue line)
the red line is the stop loss. i always post if its a long or short trade but for orientation if the stop loss is below the blue line its a long trade if its above the blue line its a short trade.
where those lines are set is my personal analysis of 70% fundamental, 20% technical and 10% sentiment. and the lines are the points of highest probability that goes into a traders advantage.
in the gold trade you quoted i changed the entree and stop loss to 1302 and 1295 afterwards but i had no time to create a new chart so i only putted the new numbers into the same post.
LOL, I’m sorry to say there’s a more prosaic, less interesting reason: Turbo sometimes travels quite a bit on business, is busy at the moment, and can only post here intermittently. He’ll be back.
Hi Nero, is it possible to explain how did you realized that this price movement was a fake?? and it would be so nice if you explain your graphics, how did you draw your lines and use Parabolic SAR…
i am sorry, i did not take a look at this thread for months.
i stoped posting trades as i figured there is no demand for it.
for everyone who wants to continue trading i have opened a new thread where i published a finished and failprove trading system created by me- which creates an average profit of 20%/monthly.
i did not get margin called. i dont like too warm areas of this world, i preffer winter over summer. a million? - no comment on that
what Lexy said is truth. much work. btw Lexy i was on malta just a month ago. very nice there, i wonder why you live in rainy England at all
tilden_Katz,
i can not give a direct answare for your question as it would be taken out of the context and would give you insight in just a portion of trading- leading to further complications in understanding the whole concept of trend identification/trading. and i would need to type several dozen pages.