Trade Management - What do u do after you enter your Trade ??

Discussion in 'Risk & Money Management' started by amandeep86, Oct 8, 2015.

  1. amandeep86

    amandeep86 Well-Known Member

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    Hello Friends ,

    From the very first day in TJ and my trading Career i have immensely focussed on Entries only.After learning various methods and Hopping systems i have learnt a hard way that Trade management and Exits are more important then Entries.

    As we know that the Outcome of a trade is decided on how we manage our trade after the entry,This thread is dedicated to discuss various Trade management strategies to get the optimum output from a Trade.

    i m in process to devise my Trade management plan ,All fellow traders and seniors are requested to contribute for the same so that an objective Trade management plan is devised.
     
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  2. XRAY27

    XRAY27 Well-Known Member

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    Good One amandeep !!! for trade management you should know the trend first...trending or sideways...are you able to decide which side of market you are in higher time frame...then plan can be constructed,for sideways,we exit for fixed profit..for trending you should follow tsl based mechanics.
    Problem is people confusing them self in deciding trend isn't !!!!!
     
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  3. amandeep86

    amandeep86 Well-Known Member

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    Objective of trade management plan Intraday :-(Still a thought Process,Need to give it a shape)

    1.To maximize return from a trade.

    2.Trade should aim for 3R to get a decent RR ratio ,assuming my Hit Rate is 50%

    3.Trade once in Profit should not lose

    4.Should have a clear objective when to do partial booking and at what R

    5.Early exit before SL or wait till complete SL ,If early exit then Rentry or Not ,if yes Where ?

    6.Whether to watch each tick after entry or Just place SL and Target and Move away.I personally do lot of mistakes when i see any candle moving against me.Entry /Rentry

    7.Where to do Adds or Not,Personally i m not very comfortable with ADDS

    8.How and When to Trail my SL at 1R or after 2R.

    9.How to keep myself calm during the trade

    10.What to do when their is no trade?
     
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  4. amandeep86

    amandeep86 Well-Known Member

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    Thanks Xray Bro,

    1.For Trends ,I m trading Pullbacks to 20EMA ,So i wait for pullbacks to Rising/Falling 20 EMA and enter accordingly on 5TF

    2. For sideways ,I m trading Range BOF on 5TF

    Please advise Accordingly.
     
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  5. gambler

    gambler Well-Known Member

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    I keep 1:3 risk reward ratio for every trade. Once enter the trade either let it achieve target or hit stoploss. I dont try to even revise my stoploss because it happens so many times that revised stoploss is hit and we are out of trade. Later on it achieves target.
    So i wait for target or stoploss whatever market gives to me

    Thanks!
     
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  6. amandeep86

    amandeep86 Well-Known Member

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    Thanks dear ,What when market reverses from just one tick from your target
    and Hits SL ??Or may give 2R and reverses ?
     
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  7. gambler

    gambler Well-Known Member

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    Do we cover our trade if stop loss escape by one tick.. I am not perfect to predict future move of stocks and i think no one can. after entering trade every trade have 50:50 possibility of hitting stop loss and target. I feel comfortable in what i am doing, which also keeps me relaxed.

    If i achieve only 3 targets out of 10 trades than also i remain at par after giving brokerage. So i strict to this only.

    Thanks!
     
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  8. J_Smith

    J_Smith New Member

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    before you risk your money..it is wise to have worked out the following..

    1. entry price - based on chart analysis

    2. max stop price level - max loss amount based on your available trading capital and %risk amount per trade

    3. min stop price level - initial loss per trade based on chart analysis and will always be less than no.2

    4. exit price - profit target based on chart analysis



    2 is never adjusted and is your worst case hard stop

    3 and 4 can be adjusted based on what happens after you enter market

    it is wise to lock in profits when they are there..as they can disappear very quickly and lead you to chase the market..which is a very bad habit to get into

    when you exit with a profit..you can always re-enter the market if price moves in the same direction as your winning trade..or..you can now take the opposite position with the same rules

    if you have no rules then you should not be trading

    if you are trading by pure chance..meaning that you can not understand price movement on charts..then you should not be trading

    if you use leverage and expose yourself to high risk..then you must have a very rigid set of rules to stop u losing all of your money very quickly..it is always better to trade with a cash account if you have enough money..never use leverage unless u are very experienced and have already made money trading

    newbies are sucked into many markets by being offered high leverage..it is also known as "leading the lambs to the slaughter"

    never be in a hurry to lose your money..do all of your hard work first..and when you know how to read charts..manage risk..take losers and winners without thinking about it..then you can enter the market with confidence and not be fooled into thinking that making money trading is easy..for it is the exact opposite..it is very hard..and even more hard if you lose most of your trading capital when you first give it a try

    J_S
     
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  9. bpr

    bpr Well-Known Member

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    Type 1:
    Entry with SL and TP until either hits

    Type 2:
    Entry with SL and TP and also trail SL

    Type 3:
    Entry with SL and no TP and then Trail SL till it hits

    Type 4:
    Enter 2x the position with SL and then have a initial TP
    At initial TP take half of the position and make the rest of the position break even and trail SL till it hits.

    add more here ...

    It all depends on individual psychology and the nature of the trading system and instrument.There is no one fit all answer.
     
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  10. timepass

    timepass Moderator

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    Is this for intraday trades ?? There maybe different strategies for different time frames. I trade intraday, and the exits at whatever level appears comfortable, because the whipsaws can take away a week's profit in one go.
     
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