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I'm getting confused before at times, Al says to not let your stop get hit. Other times, he'll say just to rely on your stop. What does he mean? Does it mean to just stay in a position until either the profit target is hit or there's a clear signal for a trade in the opposite direction?
I think it all comes down to what your experience and your strategies are. Traders like AL, who have a superior knowledge of the market, don't let their stop get hit because their are able to recognise when their premise is changing, so as you said "stay in a position until either the profit target is hit or there's a clear signal for a trade in the opposite direction" (Also, AL is a scalper who wants quick profit and does not want to stay too long in a trade) But if you are a beginner that's not always easy to do and I'm sure there will be many times where you'll get out too early and say "damn, I should have just relied on my stop".
If you create a profitable system where losses are well incorporated, you can get to the point where you just let it play out relying on your stop until you either get stopped out or hit your TP, maybe without even be in front of the screen.
Both expressions make sense, but strongly depend on what you want to do.
Yea, I'm struggling to find my style. I just finished reading a book where the author stresses that It's usually better to go with a satisfactory solution vs. always going for optimal, so I'll take your words at a sign for the universe that good enough is good enough 🙂
yes, I think he's saying don't overmanage your trade, and I can speak from experience its good advice, I sit on my hands a lot and let things play out. I try to keep my risk small, that really helps me.
Video 52A and 52B from the course will really help you.
The post was created after watching those vids. I think I'm just going to go with exiting at a legitimate counter trend setup.
Nice. Please watch them several times if you have not. You will often notice new things. Believe me.
I was in the same place as you are and really struggling with trade management. The part I would like to emphasize is that you should not seek black or white answer. Every market is different. Sometimes you should rely on your stop, sometimes you should exit at opposite countertrend revarsal setup, sometimes you should exit on opposite momentum.
It requires a lot of experience to be able to figure out which is the best way to exit on every trade. Watching End of Day Review videos by Brad speeded up my learning process dramatically, because he often mentions how to exit.
Altough sticking to concrete rules is dangerous, finding your style is important. Some traders exits as soon as they get disappointed on entry bar, or 2-3 bars after the entry. For me, I rarely exit at opposite revarsal setups, because I tend to overreact to weak minor setups and get trapped out of good trades. Instead, I keep my eyes on momentum in the opposite direction very carefully. This feels more comfortable and clear to me. In addition, my mantra is "Always ok to exit when no longer clear", which is said by Al in those videos.
Styles like those I wrote above may not be optimal sometimes, but it's ok. We can't be perfect and don't have to. Like Al says, being consistently good is our goal, and having our own styles makes it easier.
You were right. I watched them a few more times, and now I'm having an Ah Ha moment.
Your stop should be based on the prior Price Action. Where is the place where things change? You should resist moving that stop for other reasons like reducing risk when the Price Action says the original stop is still the best place. When the Price Action says a new spot is now the correct place for your stop then you can move it knowing you will not be taken out of a good trade by a minor countertrend move.
I don't think you are understanding my question. I'm not asking for where the stop should be moved to; I'm asking what it means to rely on your stop according to Al.
"I'm asking what it means to rely on your stop according to Al." The answer to that question is both WHERE and WHEN, which I tried to include in my response. Marcus, I'm glad to see you are making progress according to your later post and as Koki said, trading is always some shade of grey, never black or white. To become a successful trader, you must become comfortable with uncertainty and develop a probabilistic mindset.
