This reminds me of something I read in my early days - nobody ever went bust taking profits.I know I left pips on the table, but playing my live account conservatively and happy to take chunks of +50 pips often.
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| FxOzGirl - LIVE Trading Journal https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=3421 |
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| Author: | fxozgirl [ Mon Feb 03, 2014 8:10 pm ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
BASA took a cadjpy sell overnight, which has just closed half lots at +30...so another safe trade locked in! Since open of trading yesterday, I have closed profit of +1.47% This morning I have placed a AUDUSD sell @ 0.87550 |
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| Author: | SteveHopwood [ Mon Feb 03, 2014 9:11 pm ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
This reminds me of something I read in my early days - nobody ever went bust taking profits. |
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| Author: | garyfritz [ Mon Feb 03, 2014 11:44 pm ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
Depends on your strategy. E.g. the old Turtle strategy **relied** on occasional huge winners. It had many small losses, but the occasional huge win kept it well positive. If the Turtles took profits early, they would *lose* in the long run. Losing those occasional big wins turned it from a winning system to a losing system. So you have to decide if taking profits early actually works for your strategy, or if it "feels good now" but hurts you over time. |
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| Author: | SteveHopwood [ Mon Feb 03, 2014 11:55 pm ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
What are you wittering about Gary? What have Turtles to do with all this? |
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| Author: | SpiderX [ Tue Feb 04, 2014 1:44 am ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
Hi Shelley, could you put up a myfxbook for your BASA account (preferably for your other trades too ) ? Then we could run some analysis and checking on the trades. Cheers |
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| Author: | garyfritz [ Tue Feb 04, 2014 2:02 am ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
I think it's dangerous to state "common wisdom" as if it's (always) true. The Turtle system was a well-known example of a WINNING system, and it could be turned into a LOSING system by taking profit early. Which demonstrates that "nobody ever went bust taking profits" is not always true. A Turtle who took profits early would have gone bust (and in fact I think several of them did exactly that). It's like "let your winners run." That's another "common wisdom" that isn't always true. (And it's also the opposite of "nobody went bust taking profit," interestingly enough.) "Let your winners run" is true for trend-following systems, in a trendy market. But if you're trading a reversing market, "let your winners run" is the same as "let your winners turn into losers." Some systems require taking profit when you have it. Some systems require letting the profits run. Some systems can survive either way. The key is to find out what works for your system/market, and do THAT -- and not assume "common wisdom" always works. That's what I'm wittering about. |
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| Author: | zTB [ Tue Feb 04, 2014 2:59 am ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
I have read, and reread, this post many times. But I cannot find any mention of "taking profits early” anywhere here. Seems to me more like some kind of trade management strategy, which Steve approved by the way of an idiomatic expression, which lets some trades run, while takes quick profits on other trades. While this may not be the way of maximizing the profit output, it probably reduces the volatility of the return on investment. Hard to fault. Z |
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| Author: | fxozgirl [ Tue Feb 04, 2014 11:14 am ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
CadJpy BASA trade retraced to BE+2 AudUsd closed at BE BASA also took an AudUsd sell trade, but hit stop loss, so a big hit on that trade today.  |
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| Author: | fxozgirl [ Tue Feb 04, 2014 11:18 am ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
EurUsd still -22 pips NzdUsd hit TP so +50 pips  |
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| Author: | fxozgirl [ Tue Feb 04, 2014 11:30 am ] |
| Post subject: | Re: FxOzGirl - LIVE Trading Journal |
I currently have open a series of recovery trades for GbpUsd, original trade Buy 1.65958 Since then GBP went down the toilet and I am currently in recovery mode for this trade. The plan is to break even and clear the trades. At the moment BE is 1.64346, however I do have a pending below this line, so hopefully looking to clear these trades overnight. I don't have specific rules for where/when to enter recovery, and tend to look for pivot points, 60/240 MA's, 50/00 lines etc. The 2 things I am specific and strict about is 1. Lot sizes are the same as the original trades (so not martingaling) and 2. 5 recovery trades maximum. If price keeps going against me, then I close the oldest trade, wear the loss, free some margin and look for a better entry point. I am confident as I trade on the side of the trend, so unless there is a complete reversal in trend, I will get back to BE. Most importantly I am trading a lot size that won't kill my account |
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