Augubhai's notes - Smarts, Guts and Luck

augubhai

Well-Known Member
#25
Just a few thoughts....

In yesterday's charts, I have marked some pivot break trades that could have been taken with v.v. tight SL. 0 point SL is also feasible, because if there is a real huge momentum, it will not return to the entry point soon.

So a 0 point SL system that tries to profit just of momentum... will be profitable as long as it does not take too may entries in stagnant markets. Also will need some kind of profit taking exit.
 

akhill

Well-Known Member
#26
Just a few thoughts....

In yesterday's charts, I have marked some pivot break trades that could have been taken with v.v. tight SL. 0 point SL is also feasible, because if there is a real huge momentum, it will not return to the entry point soon.

So a 0 point SL system that tries to profit just of momentum... will be profitable as long as it does not take too may entries in stagnant markets. Also will need some kind of profit taking exit.
its not actually easy to find the momentum of the market and the direction of momentum. So, a 0 point SL trade aimed at momentum trading will make u break even in most of the trades, but have a look at the brokerage that u lose. number of trades also do increase, which is a serious case to avoid.
 

augubhai

Well-Known Member
#27
its not actually easy to find the momentum of the market and the direction of momentum. So, a 0 point SL trade aimed at momentum trading will make u break even in most of the trades, but have a look at the brokerage that u lose. number of trades also do increase, which is a serious case to avoid.
I am thinking that if I place Buy Stops in Call and Put far from current price (or above resistance), then I don't need to think about direction and momentum. The market will automatically put me in trade in the right direction when it gathers momentum. Since we do not have automated trading, I should quickly put my SL order in as soon as the buy executes.

So no need to worry about anything other than managing the trade - trail SL, book profit, etc.

Off course, there will be scenarios where the Buy executes, and the price reverse immediately even before I place the SL - that is the big risk.

The target, if any, should be very large. After all, if I am trading momentum, I should expect big targets to be achieved. Trail SL... keep it optimum... whatever... I have not thought in that detail.

Just my thought... just conceptual.... not a defined system.

After all, it's time to dream.... market so dull.... zzzzzzzzzzzz....
 

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