Well, at the cost of not appearing like a soothsayer, why you want to
predict and take money off before the market kicks you out? Always have a
point in the market where you will decide that the trend is now over
and that point needs to be updated on a daily basis. Today, that point
is 5850.
In case tomorrow, 5850 is taken out, you exit your longs and the story is over. In case we get up to 6000, your stop moves higher to may be towards 5920-5950. So, keep updating yourself because nobody can say from where exactly the market will turn.
You sell today and the market goes up 200 points, but there is a regret, so it is better to just keep trailing the market. It is a strong market, hence trailing your stop does make sense.
You would not like to trail in a weak sideways kind of choppy market, but in a trending market, the view has to be that we try to push the trend as far as possible.
In case tomorrow, 5850 is taken out, you exit your longs and the story is over. In case we get up to 6000, your stop moves higher to may be towards 5920-5950. So, keep updating yourself because nobody can say from where exactly the market will turn.
You sell today and the market goes up 200 points, but there is a regret, so it is better to just keep trailing the market. It is a strong market, hence trailing your stop does make sense.
You would not like to trail in a weak sideways kind of choppy market, but in a trending market, the view has to be that we try to push the trend as far as possible.
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