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Mon Oct 01, 2012 3:04 pm


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+1 for pop's question, and for this being a great topic for a webinar cos it hurts my head too!

pop, one thing that helped me a little was to consider that the market doesn't care where my original stop is. I could use a 10pt money stop and a 10pt target, but at some point I probably would want to trail my stop up to a technical level. If I decided that was the EB, and I wouldn't want the market to go below that again, then my risk reduces from 10pt (theoretical) to perhaps 2t (the pullback so far).
Scalping all out at 2t I still don't see works toward a profitable trader's equation, as you've described, but if a trader is swinging half his position then taking 2t profit at that point on the scalp half guarantees that the trade can't become a loser, but leaves the swing runner to get some upside. So I guess that could work for a trader who wants to aggressively reduce his risk and not sit through a deeper pullback, and who is confident enough in his read to get away with doing it?
But, yeah, I'll be very happy to hear Al's discussion.

BPAAdmin, do you know if the webinar will be recorded? Can't see any sign of it mentioned on the host site, but it will be 1am my time so I'd better get some seriously good coffee in if it isn't. Thanks.