How to Manage a Trade

[16:17:14] Nikos: Hi everyone
[16:37:57] andy: Hi Nikos - I'm new here, are you a regular ?
[16:39:52] Nikos: hi andy...sorry I was out for a min
[16:40:19] jordan: hello everyone, good morning/afternoon
[16:40:22] Nikos: Well you could call me a regular...with the group from the beginning of the year
[16:40:42] andy: ok cool - I hope to become a regular over time
[16:41:10] jordan: jeongwhoo was rights, market rally today
[16:42:05] Nikos: glad to see u here
[16:42:39] Nikos: jordan rally with momentum
[16:43:18] jordan: anything behind it? haha when there is momentum that is all that matter eh
[16:43:45] Nikos: that's right!
[16:45:00] Nikos: if we go over 166 might go higher...a bottom is in place for the moment anyway
[16:47:03] jordan: (4 hr) true trend red, stoch above the 70 level - price at upper channel (resistance) we need to break out here to have another leg up otherwise we drop (in)
[16:48:36] jordan: usually for near term market predictions we are on the same side, this time we differ!
[16:50:54] Nikos: I think we are not 154.13 might see some down action, but rebound might continue, even though DD might profit
[16:51:42] Nikos: sorry i meant 162.29-30
[16:53:03] Nikos: you see I would wait for RSI to hit 70 also
[16:54:29] Nikos: with the momentum present we might get over 90 for Stock
[16:56:44] Nikos: I have my usual 2% long at 158.21 stop below 153.50 just for fun
[16:57:13] Nikos: T/P 168!
[16:58:57] jordan: nice Nikos! stop moved at any point to break even or are you going to continue to give it room?
[16:59:33] Nikos: will move after 162.30
[17:03:05] Nikos: I do not expect it to go below 159, at which rebound I will add
[17:04:03] Nikos: Then will think of limiting the original risk
[17:04:59] jordan: i like that a lot Nikos, I like you waiting to see if it pulls back and you adding at that point
[17:05:54] Nikos: of course the market has its own mind...but that's trading...a plan and hope for the best! otherwise will be another day\
[17:07:52] Nikos: There is one draw back to this trade... you should watch it more often than 24 hrs..he he he...and that's why I am here!
[17:08:22] jordan: food for thought for your current trade. if you have a 2% position on that is well into profit and currently testing some resistance, is it a good idea to take some of the position off (1/3 to a 1/2) to which you can add back on a price retraces and if it does not you still have a a position on
[17:09:05] jordan: i like that triangle on the 15m that broke out at 159, I see why you picked that level to add again
[17:09:20] Nikos: You r right but I didn't know you could do that on Oanda
[17:09:36] jordan: like this, if you have X amount of units and wanted to take 1/3 off divide that number (units) by 3 and then place a sell order for that many units
[17:10:37] andy: hi guys - do you use the slope of the true trend line ?
[17:11:10] andy: i.e 4h GBPJPY is heading towards the zero line ..slowly..
[17:11:19] Nikos: Yes! The egg of Colombus! Thanx Jordan sometimes I think that I am getting old....
[17:12:37] jordan: yep, it sure looks like it Andy. Scroll back to 2008.9.21 (4 hr) it sure looked similiar to now
[17:12:48] Nikos: Andy r u on the 4 hr chart?
[17:13:03] andy: yep on 4hr
[17:13:17] Nikos: k
[17:13:31] andy: when you took the original 4h gbpjpy drop in, would the fact that the true trend is sloping towards zero influence your trade
[17:13:53] andy: i guess ideally the trend should be sloping the other way for an ideal setup ?
[17:14:51] jordan: by the time the stoch made the lower reading to give the signal the slope in the tt will also have changed to be pointing downward too
[17:16:58] andy: if i draw a trend line on the true trend from 24oct 08:00 it slopes upwards, if the GBPJPY was going lower wouldn't the slope down be a better signal
[17:17:30] Nikos: (Jordan u saw the triangle but also a 23.6 Fibo of the last swing)
[17:19:45] Nikos: Just try the reverse entry, works fine...thx again
[17:21:40] jordan: the theory behind the true trend is the entry is taken (short) from a point when the trend (tt red) is down and we get near term overbought (stoch up) like a rubber band being stretched apart we are looking to enter from this position so that it could snap back toward the trend in place
[17:23:51] jordan: look at all of the other drop in's from this set of series while the true trend has been red, each time the slope had been rising
[17:25:45] andy: ok gotcha -
[17:26:57] andy: have to leave now, but thanks for the input
[17:40:58] jordan: great timing if you took some profits up there
[17:47:49] Nikos: sorry Jordan I was on the phone for some time...yes I took off one third at the top
[19:34:22] jordan: approaching 159 area Nikos, over 200 pips since you took profit
[20:07:22] Nikos: Just back...passed 159 ..lets see
[20:08:11] Nikos: will wait for 158 area now
[20:35:24] Nikos: got in at 158.96 but I am careful
[20:40:48] Nikos: This trade has one big drawback: I must go to sleep as I have to get up at 05:00 tomorrow
[21:10:24] jordan: right now you are in profit and have taken profit. I would think about selling another 1/3 (or half of what you have) into this up movement right here.

News:
Exxon breaks record for profit, yet again
money.cnn.com — The largest U.S. oil company surges past analysts' estimates with a posted net income of $14.83 billion and sets a national record for quarterly profit.

One in five homeowners with mortgages under water
reuters.com — NEW YORK - Nearly one in five U.S. mortgage borrowers owe more to lenders than their homes are worth, and the rate may soon approach one in four as housing prices fall and the economy weakens...

Goldman Sachs takes $12B Bailout, Hands out $14B Bonuses
dailymail.co.uk — You aren't going to read about this in the US press, they are too busy lying about everything they report. We have to read about it in a British newspaper.