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Published 4/21/16 8:48 am central – Position Notification and partial profit
We were filled on our sell zone. The market is trading into new lows as we are up +7pts or $350 per contract at this time. I would look to adjust risk to break even or look to take some partial profits at this area if you are trading multiple contracts. We are seeing some big bids come into the market that we are beginning to test. So either we will break through and head lower or it could cause a small short term support.
Short @ 2097.75
market last @ 2091.25
Published 4/21/16 10:13 am central – Position Update with Chart and Partial Profit Thoughts
I wanted to provide a chart of the move as well as what led to me looking to take partial profits. I look to trade with multiple positions, and I feel it is import to always look for that first risk off opportunity to put some profits in your pocket and take some leverage off. I think it is hard to say the first risk off level has to be a specific profit or pt value. You need to be able to feel what the market is doing and each trade is different. Some may be 2-3 pts given the context of the day, how long you been in the trade or if you were underwater, and others may be 7-10 pts on another day given the move and momentum. Regardless of pts, I do try and reward the risk efforts with some type of offset when we start having the trade go in our favor….Yes you are leaving potential profits on the table at times, but as we all know, these markets turn around quickly and a 5-6pt winner could easily and quickly become a 5-6pt loser. I like the mindset of “Live to trade another day” and a major competent of this is rewarding yourself with partial profits, and taking risk off the table early and often (meaning put yourself in positions of worst case scenario a scratch, can’t always do this but that is the mindset). That is one of the attributes I have picked up from networking with professional traders over the years, they all have some sort of first target area/risk off mindset. Scaling into positions (not cost averaging losers) and looking to scale out of positions and manage stops and take risk off the table. 10-20pt winners are sexy and great trades but they often take a ot of risk and volatility to achieve and its almost impossible to have that type of consistency with realistic risk parameters. That is why I take partial profits or risk off and then letting the remainder ride, or have another potential offset zone and all the while updating the stops.
Today is an example of partial profits was a good idea, we are against the longer term technical and were seeing some volatility across the board on all markets with ECB and economic data coming out. So reward the risk, we got out not at the exact lows on the partial exit, and were in a position to hold some if we went lower. or trail a stop down to lock in more profits. Depending on how you want to trade, your remaining positions, if still being held, are at a scratch so you can definitely hold some for the longer term move.
Click Images for a larger new window. Designed to do that for easier viewing:
Here is the 30 min SnapShot Chart showing the move and where we can perhaps go from here.
30 min SnapShot Chart:
SnapShot JigSaw AuctionVista Chart:
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Market Dimensions Advisory – Free Edition - Market Dimensions Advisory leverages insights gained from working with professional traders, commercial clients and institutional businesses paired with an understanding of market relationships, order flow and trading volume, along with news, trends and seasonal info, to give you a "3D view" of trading.
Market Dimensions Advisory – Free Edition includes an email newsletter subscription.
The Market Action Scanner is a premier Market Profile based scanner powered by the acclaimed TAS proprietary algorithms. Sign up for a 14-day trial to Market Action Scanner!
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