{"id":54408,"date":"2016-06-12T02:00:42","date_gmt":"2016-06-12T09:00:42","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=54408"},"modified":"2018-03-25T03:25:45","modified_gmt":"2018-03-25T10:25:45","slug":"trade-management-examples","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/ask-al\/trade-management-examples\/","title":{"rendered":"Ask Al: Trade management examples"},"content":{"rendered":"<h2>Two trade management examples<br \/>\n BPA trading room Q&amp;A: April 27, 2016<\/h2>\n<p class=\"content-box-green\">Question 1: I shorted above 66, okay, thinking that there might be a pullback for a scalp. Instead, I exited for a loss even after scaling in. Can you comment on this trade?<br \/>\n <em>Video duration: 5min 00sec<\/em><\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/a49adfbb1318e7c32c\/2ef9a53e04a3187c?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/6cJXwkQRG2E\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube Channel<\/a> if needed.<\/p>\n<h3>Bull breakout of bear flag<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-66.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-66-300x233.jpg\" alt=\"Ask Al ES Chart Trade Management Short bar 66\" width=\"300\" height=\"233\" class=\"alignleft size-medium wp-image-54428\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-66-300x233.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-66-600x466.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-66.jpg 751w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>To me, I thought the odds were we might get a double bottom.\u00a0 To me, I personally would not have taken that short, because we got a bull breakout on 65 so we have a bear flag here and we\u2019re getting a bull breakout of a bear flag. So it makes me wonder if we\u2019re going higher.\u00a0 So had I sold above 66, I\u2019m going to buy back 67, close 68, close &#8212; maybe even go long.\u00a0 You can see that if you held for the rest of the day and sold more below a bear bar, you would have gotten out maybe around breakeven.\u00a0 So in terms of management, that would be my issue.\u00a0 So for me, if I\u2019m selling the 66 close thinking trading range &#8212; instead we get a bull breakout of a bear flag, with follow-through 69 &#8212; I automatically get out and if I\u2019m flat, I pretty much automatically get long.<\/p>\n<h3>Get out if needed&mdash;fast<\/h3>\n<p>So this is the thing:\u00a0 It happened so fast.\u00a0 They sell the 66 close and they say, \u201cWait a minute, 67, it should have turned down.\u00a0 Instead, it\u2019s a big bull bar closing on its high.\u00a0 I got to calm myself down here.\u00a0 Maybe I\u2019ll wait a bar or two,\u201d and then all of a sudden it just keeps going up and up and up.\u00a0 That\u2019s why I have all of these mechanical defaults that I do, and sometimes mess me up &#8212; getting out of things too early &#8212; but it\u2019s less stressful.\u00a0 So if I make a bad trade &#8212; let\u2019s say I sell 66 high and you get that big bull breakout at 67, my trade becomes bad, right?\u00a0 Whether or not it was a good idea doesn\u2019t matter.\u00a0 It\u2019s now bad.\u00a0 We\u2019re getting a bull breakout of a bear flag.\u00a0 I\u2019m just got to get out.\u00a0 I\u2019m not going to worry about scaling in, saying maybe I can minimize my loss.\u00a0 The market\u2019s going higher, so I got to get out.<\/p>\n<p class=\"content-box-green\">Question 2: Sold the 14 high, moving average test, scaled in higher, stopped out above 2 &#8212; okay, that\u2019s way over here &#8212; exited 43. I sold the 14 high on the moving average test, so you sold this high, okay? Scaled in higher, stop above 2 \u2013 okay &#8212; exited bar 43 and did not want to hold into the <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/press\/monetary\/20160427a.htm\" target=\"_blank\" rel=\"noopener\">FOMC report<\/a>, and thought this was the best I could get. Could have broken even on 47 had I waited. Did I handle it right, not to be selling the 14 high?<\/p>\n<h3>Selloff not strong<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-14.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-14-300x233.jpg\" alt=\"Ask Al ES Chart Trade Management Short Bar 14\" width=\"300\" height=\"233\" class=\"alignleft size-medium wp-image-54429\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-14-300x233.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-14-600x466.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/06\/ask-al-es-chart-trade-management-short-bar-14.jpg 751w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>My only thought is I thought, coming in, that the selloff was not all that strong.\u00a0 I thought the day would be pretty much a neutral day going into the report, and then we had a micro-double bottom, 15 and 19 closing on its high.\u00a0 I thought probably a minor reversal, but when I start to see bars closing on their highs like that, I\u2019m starting to suspect that we may go higher.<\/p>\n<p>I knew that we were going to get to the 14 high, right?\u00a0 But that does not mean that we stop at the 14 high.\u00a0 Usually when it gets there, you get two things that happen:\u00a0 One is the rally is weak and you test back down.\u00a0 This is not weak; we have all these bars closing on their highs.\u00a0 The other is you get a measured move up, okay, based on the height of the bar.\u00a0 So it takes us up there [B7].\u00a0 So once we start going three, four ticks above the 14 high, I think we\u2019re probably going to go up for a measured move.\u00a0 So for me, I would not do it.\u00a0 Also, if we have a reversal and we have three bull bars closing in on the highs and we have another couple of bull bars closing on their highs, I will sell at the moving average to take profits on the longs.\u00a0 I will not sell at the moving average to get into a short.\u00a0 I don\u2019t like to see consecutive bull bars, especially three out of four closing on their highs like that.\u00a0 I\u2019d need the market to go a little bit sideways before I did it.\u00a0 And as far as keeping your stop above 2, I thought that was probably okay. When you see this [bull BO to B25], you know you can get a second leg up, so pullback second leg up &#8212; and a bear bar here [B37]. Theoretically you get <a href=\"https:\/\/www.brookstradingcourse.com\/how-to-trade-manual\/scaling-trades\/\" target=\"_blank\">scale-in bears<\/a> who will sell below the bear bar trying to get back down to the 14 close.<\/p>\n<h3>Scaling in with wide stop<\/h3>\n<p>That\u2019s a lot to process, but in general it\u2019s okay to use the wide stops above 2. But if you do I think it\u2019s better if you look to sell again below a bear bar, either here [B31] or here [B37], and then simply try to get out breakeven on the entire trade and give up on the idea of a profit.\u00a0 For me, I usually get out on the breakout and the follow-through.\u00a0 So if I\u2019m shorting and the market breaks out against me, and has follow-through, I think there\u2019s too much risk of a measuring gap.\u00a0 So I usually just get out, and if anything I look to quickly take a trade in the opposite direction.<\/p>\n<p>But selling the 14 high, my concern was too many bull bars. Plus the micro-double bottom, and you have the expanding triangle. And we had, basically, two large legs down and then two small legs down here, so I thought the best the bears probably were going to get here was a trading range.\u00a0 So you can argue you\u2019re selling at the moving average in a trading range &#8212; yes, that\u2019s true &#8212; but too many bars up &#8212; there\u2019s just too many bars up in here for me to take a first entry short or a limit order short.<\/p>\n<p>Okay?\u00a0 I hope everybody has a good night.<\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>Two trade management examples BPA trading room Q&amp;A: April 27, 2016 Question 1: I shorted above 66, okay, thinking that there might be a pullback for a scalp. Instead, I exited for a loss even after scaling in. Can you comment on this trade? Video duration: 5min 00sec You can also view this video on [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-54408","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/54408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=54408"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/54408\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=54408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=54408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=54408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}