How to exit a successful trade!

phoenix · #11 4th June 2005, 06:27 PM

Nice nugget of wisdom,billauday.....

laxlax53 · #12 5th June 2005, 05:48 PM

Hats off to u sir for a good advice. I have few observations to make after sitting in front of the terminal and looking at some of my favorite scrips. These are in consolidation phase.
CASIL- 55 T0 60.9(HIGH 64)
VICEROY HOTEL-55.5 TO 60.8(HIGH 62)
PREMIER EXPLOSIVE- 128 TO 139(HIGH 154)
AVANTEL SOFTWARE - 98.5 TO 115/117 (HIGH 121)
breaking lower side is trend reversal and making new high is breaking out. It does not need any great rocket science.Our members can also find such levels in their favourite scrips and share the same in this forum.

anilbalaji11 · #13 6th May 2007, 06:03 PM

Quote:

Originally Posted by Traderji

How to exit a successful trade!

Do you stay with your profitable trades as long as possible because the trend is likely to continue and make your profits even larger?

This is easy to understand but not so easy to do when real money is involved. The difficulty is that although your profit may become much larger if you stay with a trade, it may also decrease and even disappear. Human nature is such that it values a sure profit much more highly than the probability of a much higher profit. Thus, traders are inclined to take their profits too soon. This can be fatal to long-term success because big profits are necessary to overcome the inevitable collection of small losses.

There is a good way to let profits run while still guarding against the possibility that prices will turn around and take away much of your accumulated profits before the trend actually reverses. It is called a trailing stop. You include in your plan a method for moving an exit point along some distance behind your trade. As long as the trend keeps moving in your favor, you stay in the trade. If the market reverses direction by the amount of your trailing stop, you exit the trade at that point. You would also offset your trade and reverse position if the trend reversed.

One way to set a trailing stop is to protect a certain percentage of the accumulated profit. That will always insure that you keep some profit on a good trade.

Trailing stop is a simple and powerful tool to preserve profits and to protect capital. This is one of the best ways to be sucessful in trading.

Trade.clues · #14 14th May 2007, 05:02 PM

if u have a winning trade... say buy 1 lot @110, place 1st stoploss according to fib. ratio. then suippose ur stock move upwards then add one more lot to @120, then add more if it again it moves to @134, 137 then place the @134 ur stop loss...... suppose on the next day mkt crach, then ur stoploss 134 triggerd then sell the whole lot... at once and looks for another profitable trade. This way u always ride on a winning horse.... never come out with a small profit...

uasish · #15 14th May 2007, 05:10 PM

Always Pyramid WINS ,never Avg Losing trades,heard so many times but we fall for the trap.

beginner_av · #16 14th May 2007, 05:54 PM

make sure its not an inverted pyramid, else all may topple too fast. whenever i see the signs, i take profit, then if everything is fine, i enter again.

biyasc · #17 15th May 2007, 01:25 PM

Quote:

Originally Posted by anilbalaji11

Trailing stop is a simple and powerful tool to preserve profits and to protect capital. This is one of the best ways to be sucessful in trading.

yha, its very powerfull, but one needs some kinds of technical analysis to ride the trend with proper trailing sl.

shashank · #18 15th May 2007, 07:47 PM

Quote:

Originally Posted by Traderji

How to exit a successful trade!

Do you stay with your profitable trades as long as possible because the trend is likely to continue and make your profits even larger?

This is easy to understand but not so easy to do when real money is involved. The difficulty is that although your profit may become much larger if you stay with a trade, it may also decrease and even disappear. Human nature is such that it values a sure profit much more highly than the probability of a much higher profit. Thus, traders are inclined to take their profits too soon. This can be fatal to long-term success because big profits are necessary to overcome the inevitable collection of small losses.

There is a good way to let profits run while still guarding against the possibility that prices will turn around and take away much of your accumulated profits before the trend actually reverses. It is called a trailing stop. You include in your plan a method for moving an exit point along some distance behind your trade. As long as the trend keeps moving in your favor, you stay in the trade. If the market reverses direction by the amount of your trailing stop, you exit the trade at that point. You would also offset your trade and reverse position if the trend reversed.

One way to set a trailing stop is to protect a certain percentage of the accumulated profit. That will always insure that you keep some profit on a good trade.

Hi Traderji,

Wish we had more posts from you for us newbies...

shashank

Saint · #19 15th May 2007, 08:12 PM

Quote:

Originally Posted by shashank

Hi Traderji,

Wish we had more posts from you for us newbies...

shashank

Yep,Shashank,agreed..........more posts from Traderji is only going to add more value to this great forum.

Saint

beginner_av · #20 15th May 2007, 10:28 PM

Quote:

Originally Posted by Saint

Yep,Shashank,agreed..........more posts from Traderji is only going to add more value to this great forum.

Saint

the same applies to you Sir. we look forward to more contribution from you.

Similar Threads for: How to exit a successful trade!
Thread	Thread Starter	Forum	Replies	Last Post
Trading Without Ego	Anil	Words of Wisdom	11	5th April 2008 02:14 PM
The most important factor in successful trading	TradingPicks	Risk & Money Management	20	3rd April 2008 02:03 AM
Beginner's Orientation- Sharing Experiences On Technical Analysis Two Day Seminar	sh50	Seminars & Tutors	29	25th December 2007 12:45 AM
what a successful daytrader does daily	alexonias	Words of Wisdom	20	18th June 2007 01:00 PM
Calculate your trade size	CreditViolet	Software	8	9th April 2006 03:08 PM