This market will eat you alive

You're taught to: 1) take small losses 2) let your profits run Well.. in this environment, TAKE YOUR PROFITS AND RUN. Don't even take small losses. On 2/19, I was short up the [bleeep], and saw a nice change of profits melt away. This time, when the market failed to break down on que, I took my profits. Volatility goes both ways. The movie 'The quick and the dead', applies here, especially with all the gaps flying about.

your post brings up an excellent point which has been revealed by many excellent traders (myself excluded) and that is: The key to successful trading depends more on your exits from the market than on your entries into the market. Which is why both bulls and bears can make money in the same market environment depending on where they exit their trades -- one is picking up money in front of the steam roller, the other trader is behind it... the fact that I am bullish does not mean I hold any ill will towards a bear making money- cuz we can all make money together - we are all one-on-one against the market and i appreciate all the insights of those willing to share in these forums. Every day, is a great day to be alive.

Edited by ONEGOAL, 23 February 2008 - 08:17 AM.

There's enough overlap not to take losses, go out 3 months on puts.

You're taught to:

1) take small losses
2) let your profits run

Well.. in this environment, TAKE YOUR PROFITS AND RUN. Don't even take small losses.

On 2/19, I was short up the [bleeep], and saw a nice change of profits melt away. This time, when the market failed to break down on que, I took my profits.

Volatility goes both ways. The movie 'The quick and the dead', applies here, especially with all the gaps flying about.

Lot's of traders seem to aim for the fences.
It's their style.
In this environment I'm looking to get to 1st base on a single.
But that' more my style anyway.
See my spider story above. LINK

I'm not knocking those that do. To each their own but, I can't relate at all to those who use IT time frames. I can't imagine doing anything that isn't VST and I am usually flat at the end of the day. I rarely hold overnight unless I feel strongly it's worth my while to do it. The markets today are too volitile and too fast. I want to feel like I can totally control what I'm doing and get in and out quickly. It has been easy to make money but, I'm completing more trades a day than ever. Waterhouse is making a lot of money on my volume and my accountant's assistant having to do a lot more work on my account every month for nine months or so.