Strategy Notes Oct 21 2009:
I use my charts and tape reading for scanning and spotting my
entries, as I've done for many years. But nowadays, when it
comes to my EXITS, and ADDING to winning positions, it's almost
always done strictly off the P&L brokerage screen, like this
screencap from actual live trades I did a couple of days ago:
http://www.TradingTalk.com/charts/IBPandLOct19.gif
This does a lot for me as a trader -- for one thing, I don't
look at multiple conflicting technical signals on a chart; I
know from looking at the P&L how exactly to scale in to, and
manage my entries and exits -- because the MONEY tells me.
If I'm blue +$10 to $50 for better, great I'll add to the
position and tighten up a trailing stop. If it's red or close
to breakeven, I leave it alone.
Make sense?
Letting the trade COME TO YOU is important, and requires a lot
of patience, using the P&L open/unrealized profit and loss as
your barometer for figuring out how to trade once you're in the
position.
I'll post more re video lessons on this in the weeks ahead, for
now I thought I'd share that with you: CHARTS FOR ENTRIES, P&L
for EXITS & DYNAMIC SCALING UP for the most part, and much less
focus on the charts once I'm in a trade - from then on out, it's
about managing the money correctly. And that's a great pro trading
strategy we can all learn from, in addition to tape reading.
Linear Mode
