I often find myself regret my decision to close a trade, after getting a quite nice +pips I often close the trade then find that the fluctuation is still going my way. I mean instead of getting (example) 100 pips, I only got 30 pips coz I’m too early to close the trade.
How do you figure out when to get out a “good” trade?
There are only two criteria for exiting a trade. One is when the underlying reason for being in the position no longer holds. The other is that your system/method told you to do so (Note: That second reason often encompasses the first, but not always).
You must always enter each trade with a SL anda TP, if price hits your TP thats ok, you should be happy with yourself for making a good trade. What i do most times is when i see the price heading towards my TP I double it, if it past my first TP I change my SL to that first TP. You can also set trailing stops.
As I have repeatedly said, that’s just flat out wrong.
The performance of some trading methodologies would suffer horrifically if you used a profit target. Similarly, some systems do not work well with stops.
Please, folks. Do not make broad statements like that. New traders have a tendency to take things literally - usually to their deteriment. There are very few absolutes in trading.
Explain further?
Explain more plz
Some time i have to put TP. If it’s uptrend and there is resistant point will pullback if touch it
As one example, if you are a trend trader the bulk of your profits will come from a relatively few very larger winners. If you were to use a TP and cut those trades off short you could potentially turn a winning system into a losing one.
The Turtles, for example, would NEVER use a target.
That’s the sort of thing I’m talking about.
I understand what you are saying. You only mention the TP what about the SL, you don’t recommend using one?
As for me before I enter a trade I have a set amount to gain from each trade also a set amount to lose base on my equity. If i’m in front of the screen and the price is getting close to my TP I move it to gain more then after it reaches that TP i move my SL there.
But regardless of my one may say i dont think i would enter a trade without a TP and SL.
No, I didn’t just mention TPs. I also said some systems - quite a few actually - where using stops don’t make things better. Bottom line is you need to test things out to see.
As for your moving your TP before the market gets there, what’s the point of even having one if you aren’t actually going to exit the position if it gets hit? Basically, you just said you don’t really use a TP. You just have a level at which you raise your stop.
I only move TP if i’m infront of the screen watching the price heading towards it. I’ve entered trades in the past and leave it hanging and when i get back i see where my TP would have hit, instead price was heading the opposite way. So this is basically why i think one is necessary.