The support forum is built with (1) a Q&A format for common trading queries received from wannabe and experienced traders, and (2) a standard forum for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
Use topic header to identify video number (and Main/Forex course as needed) you are referring to.
The Brooks Trading Course and Trading Room chat room can be found here: Brooks Trading Course Discord Server
In the trading room, Al often mentions that he ends up scalping out of most of his swing trades either for a small profit or for a small loss. In general, when taking a swing trade, how much time should someone give the trade before they decide to simply scalp out?
For example, if there is a good swing long set up with a good signal bar, but the entry bar turns out to be a bear bar closing below it's midpoint, is it always reasonable to exit 1 tick below that bar, or are there some contexts where that would be a poor management decision?
What about if the follow through consists of a couple consecutive doji bars? In that case, is it reasonable to just sell on the close of a doji bar for a breakeven trade, or is it better to give the trade more time?
The reason I ask is that I have a tendency of using wide stops and scaling in when the market goes against me. Although this results in a high win percentage, there are some instances where I end up taking huge losses, which is something I really need to work on. However, I also want to avoid exiting perfectly good trades too soon, so I'm curious in hearing how others manage these types of situations.
Thanks!
Jake
For example, if there is a good swing long set up with a good signal bar, but the entry bar turns out to be a bear bar closing below it's midpoint, is it always reasonable to exit 1 tick below that bar, or are there some contexts where that would be a poor management decision?
If the setup is strong, like you are describing, you may give it more room.
What about if the follow through consists of a couple consecutive doji bars? In that case, is it reasonable to just sell on the close of a doji bar for a breakeven trade, or is it better to give the trade more time?
Yes, same thing: for the bears a doji is a L1 but, after a good swing buy where the MKT might have reversed, it is a bad trade, so bulls should not exit.
