Hey Scott, if you don't mind, I wanted ask you a few questions regarding to the way you add to your positions. Seeing as how you're very exact on your entry/exit levels, I assume you would be for size management. Is there a method for how you add? Do you double your position or is it some percentage? Do you treat the addition separately from your initial position? From this RIG trade, it looks like you tightened your stop for the whole position. I guess I wanted to know if there was an exact way you approach adding to positions or is it more or less dictated by market action and momentum? Thanks for any insight you could provide.
Sean- adding size is a question of momentum,I like to add when something goes my way and shows me a flash of colour that way. i like to add sooner, if not before major moves happen, that way I am way ahead of the crowd.I usually double my position and might triple it if the momo has legs. I did and most always tighten my stops so that I don't earn big losers or give up a bunch of $. In this case I added and was stopped out of the RIG trade so lost a bit on the add and gained a bit on the original entry. I don't scale out as that is selling your winning trades before the conditions warrant it. You worked hard to find an opportunity, entered the trade, going with the momentum, and now you are going to sell it bank some cash and to stroke you ego even though there is no signal? It is simply not right to do that. I will do that only after a big move has been made as I see time and time again the momentum takes a while to return after a pullback or drop. I view that as intelligent profit taking.
heres the RIG trades
4 comments:
i know why the trade didn't work...because i was in it. i put the "black cloud" on it. sorry man.
Hey Scott, if you don't mind, I wanted ask you a few questions regarding to the way you add to your positions. Seeing as how you're very exact on your entry/exit levels, I assume you would be for size management. Is there a method for how you add? Do you double your position or is it some percentage? Do you treat the addition separately from your initial position? From this RIG trade, it looks like you tightened your stop for the whole position. I guess I wanted to know if there was an exact way you approach adding to positions or is it more or less dictated by market action and momentum? Thanks for any insight you could provide.
@Fozz:
Heh - it was probably just because I was thinking of entering.
Sean- adding size is a question of momentum,I like to add when something goes my way and shows me a flash of colour that way. i like to add sooner, if not before major moves happen, that way I am way ahead of the crowd.I usually double my position and might triple it if the momo has legs.
I did and most always tighten my stops so that I don't earn big losers or give up a bunch of $. In this case I added and was stopped out of the RIG trade so lost a bit on the add and gained a bit on the original entry.
I don't scale out as that is selling your winning trades before the conditions warrant it.
You worked hard to find an opportunity, entered the trade, going with the momentum, and now you are going to sell it bank some cash and to stroke you ego even though there is no signal? It is simply not right to do that. I will do that only after a big move has been made as I see time and time again the momentum takes a while to return after a pullback or drop. I view that as intelligent profit taking.
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