Its the patience, thats the killer.
Anyway, I noticed a few posts ago that a small discussion began regarding adding to positions and profit targets etc.
I was just wondering if anyone is using the 8 EMA itself as an exit tool?
For example only closing a profitable trade when a 4hr candle closes against the 8EMA.
The reason I am asking this is that it seems logically congruent, or "in harmony" one might say, with the entry criteria of the method.
What I mean is when we are above the 8EMA we are bullish, correct? Therefore why would we close a profitable trade which is still above this threshold? Logically (with regards to our entry) we would not?
This leads me to believe then that the only reason to close early, at a predetermined target, is a psychological crutch, a tonic for the ego as it were. (BTW please don't think I'm criticizing anyones trading, far from it, as I am not yet a good trader, I'm also not a very bad one either).
Furthermore, if we were able to squeeze more profit from each trade we would be adhering to the "trade less, make more" paradigm. This is something which 99%(?) of the senior (read old) traders on the forum espouse.
Here is an example. Take the recent Sterling rally, using the 4Hr only;
Initially we would be stopped out on the highlighted entry, but another TC gets us right back in there at 527. Then we would manfully (sorry ladies) ride out the small retracement, and lo another TC, so we add at 649. Then an extremely small breather and another TC hoves into view, we add at 720. Now we are at the present and would have added at 820, and be losing on this one.
This means our average position is around 687 ish, so we would be 113 pips up on average, but with a monster position 4 times larger than our original entry. PLUS the rally could continue in our direction, and this really could have been the $64,000 question.(OK, not on my micro account but maybe $640).
Now before everyone starts moaning I realize that this kind of rally does not happen too often, but they are quite common. Just zoom out of the 4HR chart. A further potential benefit is that we could discount the news to a degree, as we would not be so close to the market.
I am aware that this kind of post probably raises more question than answers,(at least it does for me);
1.How do we scale in?(pyramid, same size units etc).
2.How, if at all, do we trail the position?
3.When is too soon/late to add?
4.Should we then begin to scale out?
However, when we find a decent solution to these problems we can ask ourselves $64,000 questions all the time!
I use the 21MA or the Fractals for stops now; I get in on the 4hr and add off the 1 hr fract breakout. Yes I do get stopped out on a few but the time's it runs 300 points and I added 5 contracts 6-8 times, well that pays for about 100 losers. Lots of people close trades too quick, myself included but it's something I am working on using this 4hr.
Keep taking CT trades, I need more money 
