Cutting Winners Problem

Discussion in 'Trading' started by truber, May 8, 2017.

  1. lovethetrade

    lovethetrade Guest

    I can't really debate that because I haven't seen their results or logic. However, even if I did I doubt it would change my opinion because of what I already know.
     
    #21     May 9, 2017
  2. AbbotAle

    AbbotAle

    Conversely, the perfect entries (or almost) can be achieved even over a long series of trades.
     
    #22     May 9, 2017
  3. Every trade will look bad in hindsight...and if it doesn't, it was probably a bad trade.
     
    #23     May 9, 2017
  4. Mtrader

    Mtrader

    And your #2 Trading Rule: Never Take a Loss

    think about it
     
    #24     May 9, 2017
  5. java

    java

    They are both good rules.
     
    #25     May 9, 2017
  6. Mtrader

    Mtrader

    So, never take a profit and never take a loss...

    I thought that I had seen everything on ET, but every day I am surprised again from what is posted here.

    WARNING: visiting ET can damage your brain.

    That seems to be clear.

    I would say: think about it.
    But I doubt if that is possible.
     
    #26     May 9, 2017
    lawrence-lugar likes this.
  7. You are an idiot and don't know anything about my strategy, fool.
     
    #27     May 9, 2017
  8. Mtrader

    Mtrader

    On second thought, you are no so stupid. You don't make money, but you also don't lose money. And as 90% of all traders appear to lose money, you will be in the top 10% of all traders of ET!!! :thumbsup: :D
     
    #28     May 9, 2017
  9. java

    java

    If it was possible everybody would be doing it. It is a goal, the object of the game. No strategy that has a consistent method of taking profits will be profitable. Take a profit, then what? If you want money just put it in the bank. If you want opportunity gotta be in to win. Some people act like a position on is the same as a cold shower and they want to get it over with. Are we there yet? Will this boat ever stop rocking?
     
    #29     May 9, 2017
  10. tradethetrade

    tradethetrade Vendor

    Cutting profits short is a real problem. Are you trading with money you can't afford to lose?

    There are a few metrics that you can use to really know the depth of your mistake.

    Avg holding time - If you are holding your losers longer than winners, you are definitely cutting your winners short.

    Profit Factor - If your gross/loss is below 1, you are not only losing money, you are definitely not letting your winners run.

    MAE and MFE - Especially MFE. It uses the maximum price the stock reached and our exit price to compute how much you left on the table.

    As you can see, analyzing your trading history can bring you quantifiable, objective evidence of the mistakes you are making.
     
    #30     May 9, 2017