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wsam29

Ticks

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Would someone please explain to me why I keep doing this?

 

I'll notice a TICK and price divergence yet I do nothing to exit my position.

 

I am beating myself at this game right now. I have a 10 tick profit target that I have in mind and when the price does not reach it, I get seriously messed up.

 

Now what does everyone do when they notice a price/tick divergence when they are in an open position?

 

I find that when ever I am in a position I get clouded by my own position and not really acknowledging what is really going on. I seriously need to address that issue.

 

What I really need to do is come up with a plan for this type of situation since it seems I get myself into these all the time.

5aa70dc257ded_29jan07.thumb.jpg.6c386b9e50eb8a5496784827a0eb9518.jpg

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Hi wsam29,

 

I'll be glad to throw in my 2cents here. First do you have an exit stragey? It seems like you have a solid entry strategy but fail to have an exit. Do you have targets? Are you aware of the next line of resistance/support?

 

As a trader you need to have an entry and exit strategy. The exit can be mechanical such as 10 points or can be based of pivots, indicator signals, S&R levels, etc... If you are aiming for 10 points, just place a sell order 10 points above your entry and forget about it.

 

Second, this is my personal opinion but... a 5 minute TICK chart is a little lagging. Alot of traders use a one minute TICK chart.. perhaps you might get an earlier fill using a 1 minute TICK chart and could lead to higher odds of hitting +10? Observe it for a bit and see if you find if of any use.

 

Third, a price and TICK divergence is a good strategy when combined with another. To be honest, I'm a little scared just to trade off price and TICK divergences. HOWEVER, the price and TICK divergence produce powerful signals at a key pivot. If I see a divergence at a pivot level, I am usually all over it.

 

Fourth, for an exit strategy based on price/tick divergence, why not exit when TICK's reach the upper range? For example, on that chart you posted Im seeing an upper range of roughly 1000. So basically youre exit would be as soon as TICK's reach +1000.

 

If you tend to become emotional and your mind clouds you in a position, try trading off pivots. Use your TICK/price divergence strategy and apply pivot points to it. The beauty is that by placing your stop below the pivot (not directly below... but i use a 10 pt stop) you know automatically if the trade is wrong. It offers a very comfortable entry level because you know the risk. Then the exit would be to the next line of pivot or at your TICK upper range reading.

 

Good luck :)

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For some reason, I do worse using 1 minute time frame, whether that be ticks or price. All those tick hooks, no idea which one to take and be consistant.

 

I find that 5 minutes gives me a good idea of the overall situation which may lead to a larger move. Had I not called it a day after 4 trades, I don't know if I would have caught the move lower.

 

The ER2 was giving hints about a lower market as I was watching it out the corner of my eye so to speak. That is besides the point with hind site trading.

 

Its when this "larger" move does not happen that messes me up mentally, especially when I see a price/tick divergence and I am long. Train of thought, exit the whole position, or exit half and let the other half ride and have a BE stop.

 

That is something I seriously need to do is sit down and come up with a plan which I can follow day in day out.

 

I have a habbit of wanthing to trade.

 

I've gotten over the hard part of trading which is the psychological part, now I need to figure out the plan I need to implement.

 

I got all night to think about this while at work...yeah, it sucks but I need to pay my dues. *sigh*

5aa70dc25d604_29jan07er2.thumb.jpg.900470bca3af207bc744a3ca6e7202fb.jpg

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I tend to partial out of my positions. I like taking half off as soon as possible. This way I bring my stop to break even and I am risk free. A risk free trade certainly takes alot of the emotion out when managing a position for me. I can give the trade more room sort of speak.

 

I've gotten over the hard part of trading which is the psychological part, now I need to figure out the plan I need to implement.

 

I got all night to think about this while at work...yeah, it sucks but I need to pay my dues. *sigh*

 

Ive been there wsam29... a trader travels through one heck of a journey. (at least I did) But you know, the challenge is the fun part. :) Adjusting setups, designing new setups, letting that creative mind think is one thing I truly enjoy about trading. Best of trading.

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Part of it has to do with the execution platform in my opinion.

 

To constantly adjust orders and readjust still requires some amount of brain power that is wasted because of that.

 

I just may have to open up that account with Infinity to find out if execution platform is playing a role in my trading.

 

Tradestaion and IB are too time consuming when it comes to bracketing orders and then readjusting after.

 

I had this in mind regarding scaling out.

 

stop -10

exit half +6 profit

move stop to -5, now the trade becomes risk free and only cost of commission, but done automatically thanks to the execution platform.

let the last half run and see what happens.

 

But I do agree my exits are wishy washy, I'm trying to be flexible on my exits and strict with my entries.

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Yea.. it might make your life easier if an automatic stop and target was placed the moment you enter a trade. Why dont you download a demo from Infinity? The execution matrix is super quick and you can place bracket orders very easily. Orders can be cancelled with one click... alot better than the TS matrix. It was designed for prop traders so the execution is top notch.

 

Also, regarding scaling out... I tried both +5 and +10 at first. I found that when a trade goes in your favor, it will usually hit +10. I know traders out there use a +5 initial target but in my opinion it is too small. If a winning trade can not take at least +10 points... there is definitely something wrong with the strategy. Try focusing on your exits and get used to ringing the register. It took me some time getting used to scaling out, but its become a habit now and automatic.

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I've tried the demo before, I like it.

 

I'm just getting the paper work ready to open an account right now.

 

But I also agree with you on that one, regarding +5, +10.

 

I'm just gonna have to play around with it with real money.

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