Prospectus's Post
This is something that I never have gotten used to in swing / position trading:
25 Replies:
Fear of a big gap against me tomorrow. I'm long HANS and RVBD, but I'm hesitant to hold overnight. What if HANS gaps down to $40 tomorrow? That's way below my stop. It's not likely, but it could happen. I know what my R is intraday, but you have no way of knowing what it is if you hold overnight. With my R precisely defined, I can pick the best position size. With an overnight hold, I could be overexposed to risk.
How do you manage the overnight holding risks?
I'll reduce my position in HANS so that if it goes to $40, I'll still be down only -1R. I'll hold RVBD as is.
On second thought, I'll close HANS completely. I've been in the red since I took the trade, though it didn't hit my stop yet. Reduce and remove...
On third thought, it looks like $44.20 is a good support level for HANS. I guess I'll "sell to the sleeping point".
On fourth thought, it's starting to get some strength here. I'm not sure what to do...
would have sold some HANS and pilled money into RVBD
The only thing is I have to watch the daytrades due to my account size.
that's a BUMMER...can't jump in and out like it use to (pre-2000)
Wait until 1 minute to close. Then close out your position. Otherwise you'll hold until tomorrow, and who knows what tomorrow will bring.
Once my account is over 25K (I can dream, can't I?) then I don't have that problem.
I started with just a little over 10K in 1995 and was able to build my account...everything is possible
Sold half of my HANS. That's my sleeping point.
what was your entry for HANS...and the signal for buying it?
Well, I missed the big move on Friday, so I wanted in. I bought a break of yesterday's highs, in at $44.92, and my stop was 1$ below that, at $43.92. Position size based on that, so if it gapped down to $40, I'd lose about 4R. Hence I sold half at the close, so that's a -2R worst (hopefully) case. I didn't want to hold the full size since it was in the red all day. Gotta expect the market to fade your entry a bit, but I felt it was too much. I'm coming from a daytrading perspective, and the whole position trading mindset and timeframe is against my way of doing things...
I understand...for position/trend trading you should never buy a stock once it started its swing because you are at the mercy of profit takers.. always buy it at a proper buypoint or wait for some consolidation like flag or channel..see JCG
So you never buy breakouts for position trades? What is a proper buypoint? Inside of a consolidation? Looking at JCG.
So my entry in RVBD at $42.93 is a good one?
JCG at $50 was a good entry?
I buy as they breakout...HANS is in the middle of the move already...last Friday would have been the time to buy it...JCG is getting ready for a move so I gave it as an example...if you missed the first move...a next move is coming
between $50-51 would be the ideal entry
Now JCG above $53.20?
Stop $51?
low of the latest flag
Thanks, Pinoy. :)
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