Taking Money off the table

[BullMarket]

I’m starting to experiment with taking profits off the table at resistance levels and so, far I’m undecided on how well it all works. Dose anyone care to share how they manage this?

-Frank

[MadisonFX]

Originally Posted by BullMarket

I’m starting to experiment with taking profits off the table at resistance levels and so, far I’m undecided on how well it all works. Dose anyone care to share how they manage this?

-Frank

Maybe try and talk half off at your resistance/supplort level, let the rest run. If your level holds exit if not re-enter the previous half.

[Trader01]

Originally Posted by BullMarket

I’m starting to experiment with taking profits off the table at resistance levels and so, far I’m undecided on how well it all works. Dose anyone care to share how they manage this?

-Frank

That is guaranteed to keep you "working" hard forever and earning/losing meagre/ogre sums. A byproduct of such folly would be your firm dedication to real-time trading, 5-6 monitors, internet connections as fast as light etc., etc.

My suggestion? Lock the table in another room or in the basement of your ex-wife's house (unbeknownst to her ). Enjoy life, travel .... & ... make money at the same time.

Sneak in every once in a while and put more stuff on this table, esp. when a higher high (or lower low) is made.

Have your friends call you @ the beach & tell you how resistance/support levels are being taken out like sissies, one after another.

Amen!

[Trader01]

Originally Posted by BullMarket

I’m starting to experiment with taking profits off the table at resistance levels and so, far I’m undecided on how well it all works. Dose anyone care to share how they manage this?

-Frank

That method is guaranteed to keep your nose to the grindstone forever.

Instead, hide the table in another room or even in your ex-wife's basement (unbeknowst to her, of course) and occasionaly add to its contents -- especailly @ new highs (or lows).

Have your real-time analysis friends call you while you're traveling and enjoying life and tell you how resistance/support levels are being taken out like sissies, one by one.

Yeah, dyin ain't much of a livin, Frank.

[WRR]

Originally Posted by BullMarket

I’m starting to experiment with taking profits off the table at resistance levels and so, far I’m undecided on how well it all works. Dose anyone care to share how they manage this?

-Frank

BullMarket,
profit taking is one of the most difficult parts of trading. Here are a few methods. They all work well under certain conditions. The difficulty is determining which method is best to use when. Generally speaking, I like smaller fixed targets when the market is ranging and some sort of trailing stop or trendline break in trending markets.

Avoid larger trade sizes with breakouts as risk is higher than buying dips and selling rallys.

Mulitiple lots with fixed targets. E.g. take x pips on the first lot, y pips on the second lot, move stop to break even after z pips, take z+ 10 pips on the next lot, etc.

Mechanical Trailing Stop.

Trailing stop a few pips below the previous higher low or a few pips above the previous lower high. Flag here is to watch for trendline break.

Support and Resistance targets (could use previous highs and lows or Pivot numbers).

Fibonacci extensions (e.g. .618, 1.00, 1.27 and 1.61)

% of account or fixed $amount profit for the day or week, etc.

30 pips and close.

5-20 moving average cross over on a 5 min chart.

etc.

WRR

[BullMarket]

That is guaranteed to keep you "working" hard forever and earning/losing meagre/ogre sums. A byproduct of such folly would be your firm dedication to real-time trading, 5-6 monitors, internet connections as fast as light etc., etc.

My suggestion? Lock the table in another room or in the basement of your ex-wife's house (unbeknownst to her [img]images/smilies/smile.gif[/img] ). Enjoy life, travel .... & ... make money at the same time.

Sneak in every once in a while and put more stuff on this table, esp. when a higher high (or lower low) is made.

Have your friends call you @ the beach & tell you how resistance/support levels are being taken out like sissies, one after another

.


A lot of great ideas! Thanks for the input.



This is a great idea, but I don’t have the ability to trade long term yet. That requires low leverage with large account. I’d like to look into it one day, but for now I’m going to do intra day trading. More money is made in smaller time frames anyhow!

BullMarket,
profit taking is one of the most difficult parts of trading. Here are a few methods. They all work well under certain conditions. The difficulty is determining which method is best to use when. Generally speaking, I like smaller fixed targets when the market is ranging and some sort of trailing stop or trendline break in trending markets.

Avoid larger trade sizes with breakouts as risk is higher than buying dips and selling rallys.

Mulitiple lots with fixed targets. E.g. take x pips on the first lot, y pips on the second lot, move stop to break even after z pips, take z+ 10 pips on the next lot, etc.

Mechanical Trailing Stop.

Trailing stop a few pips below the previous higher low or a few pips above the previous lower high. Flag here is to watch for trendline break.

Support and Resistance targets (could use previous highs and lows or Pivot numbers).

Fibonacci extensions (e.g. .618, 1.00, 1.27 and 1.61)

% of account or fixed $amount profit for the day or week, etc.

30 pips and close.

5-20 moving average cross over on a 5 min chart.

etc.

Also some great ideas. It’s going to take some grunt work to find what’s best. Right now I have some loose idea as to how to take profits.


The theory is simple. The longer a trend is in place, the more likely it is to end. So with that in mind I’m going to take my profits at the first conservative level, then renter half at the next rally then take that at next target, renter one quarter and ,etc, etc.


I’m also going to take a look at WRR ideas. Some great ones there.

-Frank

[_Ayman_]

Keep us updated about your progress Frank

[BullMarket]

Originally Posted by Trader01

That is guaranteed to keep you "working" hard forever and earning/losing meagre/ogre sums. A byproduct of such folly would be your firm dedication to real-time trading, 5-6 monitors, internet connections as fast as light etc., etc.

My suggestion? Lock the table in another room or in the basement of your ex-wife's house (unbeknownst to her ). Enjoy life, travel .... & ... make money at the same time.

Sneak in every once in a while and put more stuff on this table, esp. when a higher high (or lower low) is made.

Have your friends call you @ the beach & tell you how resistance/support levels are being taken out like sissies, one after another.

Amen!

After many hours tolling in the chop. I think this may be the best answer. I’m going to look into longer time frames. I’ve been trading the Hour chart using the 15 minute chart to time entries but, A daily chart with hour or 4 hour timing might be the answer if interest is in my favor.

Please tell me you've done fantasic as a trader.

-Frank