Let’s start with an excerpt from a comment on last week’s article “Trading after Structure has Formed – 3“. “In the winning trade from yesterday’s post I’m wondering why you take partial profits so early. Your eventual exit is maybe five times further. This is not the first time I’ve noticed this in your trades….
Last week’s article led to a great question on twitter. Yeah, fair call. It does look ridiculously early. Here’s the trade we discussed in that article. Here was my reply: Let’s step through the entry and early trade management decisions. The vertical axis is a little compressed on the 1 minute chart so we’ll do…
An exit is never final… until the market SAYS it's final. Another example: An exit is never final… until the market SAYS it's final. Happy trading, Lance Beggs
Context: The trade idea: The entry: Out: How I think on trade exit: All exits are temporary. Pause and reassess. Consider re-entry if the premise remains valid. Sometimes it takes two entries. Sometimes it takes three. There are no ways around this. In the uncertainty of market action it's unreasonable to expect that we…
Lower timeframe (LTF) entry patterns can also trigger exit. Perhaps that's obvious? Perhaps not? In any case, as I used an LTF trigger pattern for exit during the week the following thought crossed my mind – "I don't recall discussing this via the newsletter" So here we are… There are MANY entry trigger patterns….
Here was the general plan: I won't go into detail regarding the wider market environment and context within which the trade occurred. It's not the point of the article. Truth be told – it was a marginal trade at best. Ideally such a trade would be taken in a market with a strong bearish…
Email from a YTC reader who I'll leave anonymous! 🙂 Hi lance. How are you? I wanted to ask you, do you use hard stops or mental stops? I had a trade today go wrong on me because I think either my stop was too tight or I shouldn't have used a hard stop….
I particularly like this trade. Not just because it wins. But because of the reasoning behind the trade. Immediately it was closed I thought it had to be the basis for a YTC article, simply to demonstrate the entry pattern. But on further thought, it actually displays many of the concepts we have discussed here…
Reader Question: I've got a question related to taking profits. I'm having some great success with entries (finally) but am always torn between taking profit at 1:1, 2:1 (which I've found to be more common lately) or holding out until the next S&R. I know you take 1 profit off the table at 1:1, move…
I'd like to share a great question received this week which highlights a number of recent topics that have been discussed via the newsletter or blog – the irrelevance of individual trades, the imperfection of ALL exit strategies, plus patterns vs context and the way price movement influences other traders' decision making. Question: I stumbled…
