Trade Management and hanging for the long ball...

Folls asked the question about how to manage a trade for more profits.......and what a great question that is....a classic problem, wait to long and give it all back or take it to quickly and miss the mother load like today.

Well, my trading is divided into three parts to start with. Everyday, you have your first trade of the day and back several years ago I was having one of those periods in trading where I was my own worst enemy. I would end up just sitting there watching 11 times frames with 17 indicators and being a (analyst) fool. Then I would make up a trade and of course the market was more then willing to teach me yet another lesson in life. That is why I now have three types of trades and here they are:

1. The first bar of the bar trade, this is where I got that one out of the way, good, bad and ugly. Of course, today it was ugly was I could not get half off and move to BE so ended up taking a direct hit.........7 ticks on a 20 lot as posted in the chart on another update.

2. The perfect trade as I have defined it, this is the one you should wait for, your research and screen time has told you this is your best odds of making money. In this type of trade, I have rules to take half off, move to BE and then look for another perfect setup to add back in and trail a stop. Now, here is some ideas behind this trade. I watch a higher time frame to determine the trend.


Let's say you were using the stoch on the 15m chart on the right....and it just turned down from being overbought. You know that this could run for a while and has good odds of running for 5 points. Your perfect setup is on the 3m chart or the 250V chart...whatever time frame you enjoy trading with. You take the setup and entry the trade, at some point, using your indicator on the same time frame you found the perfect setup, you take half off and move to BE. Still watching the higher time frame you see the stoch is only half way down....implying more downside and you also see another perfect setup.....you then add back in and make sure your stop is at least BE......and when you trading plan says.....it's over.....then move the stop to just above the last high if you are short.....and keep adjusting it up until it takes you out...

3. Every trader I believe has one problem, "waiting" for that perfect trade...the mother of all shorts, the father of all longs and that brings us to this type of trade. You decide, for whatever reason you just have to take a trade, you can't wait any longer....all your stuff is either mixed or just flat out showing the market going the other way. All the indicators show you should be shorting but the price is moving higher and higher. So you decide, I'll buy the dang thing. Most of the time, you just bought the high.......has that ever happened to you. Well maybe the FOOL doesn't have this problem but I know I have. SO when I entry one of these trades it only for a scalp.....fast in and out at the sign of trouble...this is about the only thing the CCI is good for using the 14/6 settings. By the time, you see the setup, filter out the trades, entry the trade the 6 has almost moved to the other side and we all know that......so don't try and get a MOAS trade with short term setting on any lagging indicator.

So, I have three trades setups
1. First bar trade to get me in the game.....half off and BE....then hope the perfect trade comes along. This happened on the 14th.
2. The perfect trade using the higher time frame to confirm, half off and BE....then look to add back in if the higher time frame still has room to run. Trail the stop until your indicator on the perfect setup says watch it.....and use the high/low of the last bar as a stop.
3. Scaplers love affair......quickies.....easy in and easy out.....don't think this type of trade will earn you big bucks. How many times have you shot an eagle at the golf course using just a pitching wedge????