Trade Management and Taking Profits Flashcards
When does Trade Management Begin?
It comes after you Enter the Trade
A Huge Part of Trade Management is having a Plan, It is needed and Required to successfully trade
A Huge Part of Trade Management is having a Plan, It is needed and Required to successfully trade
When not sure when to take profits, Trader’s Equation is always good when taking profits at 2x Initial (or even actual risk) risk. Always need profit at least as big as the minimum scalp
When not sure when to take profits, Trader’s Equation is always good when taking profits at 2x Initial (or even actual risk) risk. Always need profit at least as big as the minimum scalp
Trader’s Equation Must Be Positive - Be Logical when trading, it must mathematically make sense
Trader’s Equation Must Be Positive - Be Logical when trading, it must mathematically make sense
What are PBs in a Strong Trend a Result of?
PBs in a Strong Trend are a Result of PROFIT TAKING
Traders need to Protect their Profits and let their Profits grow. They can do this by using
Trailing Stops
Protective Stops
Breakeven Stops (These are foolish stops as they have no mathematical premise)
Traders need to Protect their Profits and let their Profits grow. They can do this by using
Trailing Stops
Protective Stops
Breakeven Stops (These are foolish stops as they have no mathematical premise)
Protecting Profits - Change the Plan when New Information is presented
Protecting Profits - Change the Plan when New Information is presented
OPM = Other Peoples Money; this is never TRUE. Once it is in your account it is YOUR MONEY!
OPM = Other Peoples Money; this is never TRUE. Once it is in your account it is YOUR MONEY!
When Trading never look back, always look forward for the next great trade. What happened in the past is done and you cannot change it. Do not feel bad over a loss. Forward thinking ONLY.
When Trading never look back, always look forward for the next great trade. What happened in the past is done and you cannot change it. Do not feel bad over a loss. Forward thinking ONLY.
When Deciding How to Manage a Trade, Ignore Entry Price. Always manage Trades based upon the current Price Action.
*Like here when the market is AIS and we then get this strong buy signal at the bottom of this Bear Trend so we must exit our shorts no matter where or why you shorted
When Deciding How to Manage a Trade, Ignore Entry Price. Always manage Trades based upon the current Price Action.
*Like here when the market is AIS and we then get this strong buy signal at the bottom of this Bear Trend so we must exit our shorts no matter where or why you shorted
Take Profits Before They Disappear
Have goals when you enter a trade
Adjust goals once you see strength move
Take Profits Before They Disappear
Have goals when you enter a trade
Adjust goals once you see strength move
When Goals are unclear what should I use?
Use your defaults
1x/2x Initial Risk
MM
*Mathematically it is always good to take off some risk @ 2x your initial risk
Find Profit Targets, There are many ways to do so!
Find Profit Targets, There are many ways to do so!
Once the Trade Goes Your Way ADJUST TARGETS
Some Potential Target Options are…
Take Profits at 2x Initial Risk
Take off half @ 2x Actual Risk & another 25% @ 3x Actual Risk and Swing the final 25%
Once the Trade Goes Your Way ADJUST TARGETS
Some Potential Target Options are…
Take Profits at 2x Initial Risk
Take off half @ 2x Actual Risk & another 25% @ 3x Actual Risk and Swing the final 25%
Big Bear BO - High Probability of Lower Prices
Big Bear BO - High Probability of Lower Prices
The use of the word Probability when Trading means at least a 60% probability so can take profit at 1x risk
The use of the word Probability when Trading means at least a 60% probability so can take profit at 1x risk
When Should I Trail my Stop?
After Each Strong BO to a New Low/High
Take Profits when Goal is Reached and at Support
Take Profits when Goal is Reached and at Support
After Target Goal is Hit at Support should I look for a Reversal up?
Yes
Avoid Taking SMALL PROFITS if there is a Probability of a Big Move.
Actual Risk can be used to find minimum target, not best target
Avoid Taking SMALL PROFITS if there is a Probability of a Big Move.
Actual Risk can be used to find minimum target, not best target
