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How many pips or % to quit?

  • Post #1
  • Quote
  • First Post: Oct 26, 2007 11:26pm Oct 26, 2007 11:26pm
Whats the general Rule? I've been making 100 pips quite regularly. But then, just by looking my current position now, I have super drawdown.

Short gold @ 759.0, now spot 785.0, I'm down 260pips (3.4%). Granted small lot but the pain is there and I'm wondering when I should cut. Should I hang on to my analysis that gold should be around 740, and endure the drawdown. I'm very confused. I know how to make money, but then I lose money very easily too.

In the past I've cut 500pips losses only to see it going back in the original direction. Since then, I tried keep losses to 100pips but if I'm so disciplined to cut every time I see -100pips, I will lose more than I make (for some reason, chart always go against me first before going my way). So what should I do? What is the magic number or technique. Please share.
Quoting matouya
Whats the general Rule? I've been making 100 pips quite regularly. But then, just by looking my current position now, I have super drawdown.

Short gold @ 759.0, now spot 785.0, I'm down 260pips (3.4%). Granted small lot but the pain is there and I'm wondering when I should cut. Should I hang on to my analysis that gold should be around 740, and endure the drawdown. I'm very confused. I know how to make money, but then I lose money very easily too.

In the past I've cut 500pips losses only to see it going back in the original direction. Since then, I tried keep losses to 100pips but if I'm so disciplined to cut every time I see -100pips, I will lose more than I make (for some reason, chart always go against me first before going my way). So what should I do? What is the magic number or technique. Please share.
You should not get into a trade unless you know exactly where you would get out and why. Nobody can answer that for you since no one knows your reasons for getting in, among other things. But judging by the fact that you had to come to a forum asking for an exit strategy you should have been out long time ago. My advise is close your position and forget about trading live until you have a solid trading plan. Your plan should provide all the answers for all the possible scenarios your trades may encounter. Including when to bail if a position goes sour.
You say that you know how to make money and i say you are just fooling yourself. Making money is not about good analisys or getting into positions that eventually hit the target but rather about preserving your capital and staying in the game for the long haul. Your capital is your most valuable tool. Cherish it, and protect it, especially from yourself.
Please do not take this the wrong way. I am saying some of this things to you the same way i am saying them to myself.
Stubbornly persistent
Quoting matouya
Whats the general Rule? I've been making 100 pips quite regularly. But then, just by looking my current position now, I have super drawdown.

Short gold @ 759.0, now spot 785.0, I'm down 260pips (3.4%). Granted small lot but the pain is there and I'm wondering when I should cut. Should I hang on to my analysis that gold should be around 740, and endure the drawdown. I'm very confused. I know how to make money, but then I lose money very easily too.

In the past I've cut 500pips losses only to see it going back in the original direction. Since then, I tried keep losses to 100pips but if I'm so disciplined to cut every time I see -100pips, I will lose more than I make (for some reason, chart always go against me first before going my way). So what should I do? What is the magic number or technique. Please share.
The magic number for losses is around: - 182.98564883345 pips.

matouya: "I know how to make money, but then I lose money very easily too." - :surprised

Maybe you should try instead: "I know how to lose money, but then I earn money very easily too." -
Quoting SomedayIwill

Maybe you should try instead: "I know how to lose money, but then I earn money very easily too." -
My thoughts exactly...

Hold on untill you get a margin call would be the best strategy!
  • Post #5
  • Quote
  • Edited 8:08am Oct 27, 2007 7:49am | Edited 8:08am
The magic numbers are.......

D0 N0T 5H0RT 60LD

Buy on dips... always and forever, until we find another planet....

http://img522.imageshack.us/img522/1...3650nybmi3.gif

Quoting zek132
My thoughts exactly...

Hold on untill you get a margin call would be the best strategy!
He came here asking for help and this is what he gets. I hope you feel great man.

I can't answer this is one plain answer for you because, like said above, I don't know the reasoning for your shorting. If you are a long term trader and are holding because you saw something on the long term charts then stay until you see a turnaround, which probably already happened.
If your trading short term, based on dailies or lower, then you need to re-analyze the situation. Once you do this, figure out : 1. Why would I take this trade. 2. Why would I not take this trade. 3. Would I hold this trade from here.

It looks to me by you telling us that you are worried about this position that you are still applying emotion to your trading. My suggestion to you would be this, take a small break ( I know it's hard to). If you do this and are still making the same mistakes, then it's time to learn more about your own psyche. Good luck to you. Most of the time, people here are fantastic about helping, so ask someone if you have more questions. We all started out, for the most part, the same way.
I dream, therefore I become.
I forgot to mention, there is no magic number for a loss. It's based on how large of a drawdown you feel comfortable holding. If you are using a higher leverage, then obviously your tolerance for drawdown will be smaller. If you are using less, then you could sustain a larger drawdown and not be affected as badly.
I dream, therefore I become.
Quoting mike w
I forgot to mention, there is no magic number for a loss. It's based on how large of a drawdown you feel comfortable holding. If you are using a higher leverage, then obviously your tolerance for drawdown will be smaller. If you are using less, then you could sustain a larger drawdown and not be affected as badly.
mike w: You would become a great politician

matouya: If you are trading with large amounts of money for yourself, then please stop trading now, immediately. The best advice I can give you.

If the money you have on your trading account means basically nothing for you, then keep having fun if you like to. After the Forex is done with you, then please don't fund another account, start demo/paper trading.
Quoting SomedayIwill
mike w: You would become a great politician

matouya: If you are trading with large amounts of money for yourself, then please stop trading now, immediately. The best advice I can give you.

If the money you have on your trading account means basically nothing for you, then keep having fun if you like to. After the Forex is done with you, then please don't fund another account, start demo/paper trading.
Yeah I guess your right, I would. lol Dumb post I know, but I can't be sure of what other people know or not... Matouya, he did just give you some good advice. If you don't know exactly how to take a loss yet, I'd follow it.
I dream, therefore I become.
Quoting Warper
The magic numbers are.......

D0 N0T 5H0RT 60LD

Buy on dips... always and forever, until we find another planet....

http://img522.imageshack.us/img522/1...3650nybmi3.gif

My thoughts exactly. Ive been buying gold all the way up. I still think its got room to go too.
Mike and Someday have both given you some good advice, there is also a lot of good reading material stickied in the beginners section.
All that being said, if you REALLY want a number then have your stop loss at half your take profit. This may not suite your style of trading but at least it will help you protect your capital.
Good luck
Closed position. It's rather small lot, but since the lost is big, % wise, it's quite painful. I got in because it look rather bearish and I expect more whipsawing, until it retraces more. But the sudden weakness of the dollar kinda destroy everything. I should have gotten out @ 770, but then I froze and stupidly not acting. Well, for that I lose even more.
You ought not get into an exchange unless you know precisely where you would get out and why. It's not possible for anyone to answer that for you since nobody knows your purposes behind getting in, in addition to other things. Be that as it may, based on the way that you needed to go to a gathering asking for a leave methodology you ought to have been out prolonged stretch of time prior. In the event that you are a long haul trader and are holding since you saw something on the long haul diagrams at that point remain until the point that you see a turnaround, which likely as of now happened.
Epic Necro. Thread has been dead for almost ten years.
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You clearly do not have a proper trading plan.
You need clear stop losses and clear take profits and clear entries.

I suggesting forming a proper trading plan and testing that plan so you know what you're getting in to.
It's a lot easier to trade and take a loss when you know those winners are coming because you made a plan and because you tested a plan.
Attached Image
Quoting kenshin
Epic Necro. Thread has been dead for almost ten years. {image}
Interesting image, did you make his image manually?
  • Post #18
  • Quote
  • Last Post: Apr 26, 2018 5:04am Apr 26, 2018 5:04am
There is no formula to crack it but one must learn how to set stops. In case, if there is any rule or formula, it's all hogwash because next move is totally unpredictable.
One needs to find the best possible trading system for entering positions. Most new traders will be unable to reach their goal until they make some radical changes to their approach. Moreover, we have to practice risk management, so that if we are wrong, risks can be mitigated. And if right, profits can be maximized.
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