Hello friends,
I have a question for some veteran traders, and that is for each trade, how do I set an exit position? Iv'e had a few situations where I'm entered a trade and it was going my way at first but then came back down and I got out for a small loss. I had no idea that would be a top and figured patience would pay out. Is there some sort of formula for where to exit the trade?
having an exit point is the most important thing you should know
Thanks guys. Palmer I don't really relate to much of what you said about new traders because I've been studying long enough (much longer than my profit chart indicates) to know what a big move is and I definitely don't have expectations of hitting home runs every trade. The example I was asking about was TKAI on Thursday morning. I bought it around 9:37AM at 1.46 and watched it go up to 1.60 (which wasnt a S/R level) and then come back down and I sold for a 2 cent/share loss. If i had sold at 1.
I was in that play, level 2 was a big factor
Ah ok, so now I'll know to watch lvl 2 like a hawk because I've been sort of disregarding it and relying almost solely on patterns and volume as indicator.
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