How aggressive are people in trying to get to breakeven on a trade?

[Carolynsi]

I use daily cahrts - and i normally try to jump on an obvious existing trend.
Basically if there is any trechnical reason at all for me rasing my SL nearer to breakeven then i take it. (be it a S&R point, a trend line, MA etc)

Im only starting out - so im just wondering what do other people do to get to breakeven on a trade?
(I then use a different indicator to catch up to breakeven to trail for take profit - but this is currently subjective depending on the behaviour of the instrument)

I trade daily charts and psychologically i like to be at breakeven within 2-3 weeks max.

What are other peoples thoughst on this?

[carteyroydw]

Be careful about trying to raise your stop loss to break even too quickly as you don't want it to be hit just by market noise.

Another useful way to break even when the trade is moving in your favour is to take profits on part of your position. For example, if you bought in at 100p, and initial stop was at 95p, then you could set a limit order to sell half your position at 110p.

Even if the market turns round and you get stopped out on the remaining part of your position you would've broken even.

[cesvvuzy53]

Thats very interesting. Its an approach i never thought of before.

[CatfeftPari]

Hi Adecco -I trade off the dailies also, strictly trend-following. My initial stop level is always technically based, e.g. just below the low of a swing low day in an uptrend. On such trades, I do sometimes move the stop to a higher technical level but more often find I am just trailing the stop higher so as not to enlarge my losses if the higher technical stop is hit.

Sometimes my initial stop is hit by noise, but if its that close to entry, then the r:r balance would be so far in my favour I can accept missing out on a minority of trades stopped through early exits when the majority going in my favour are so much better in proportion.

Incidentally, I don't ever have trades taking as long as you say to get to b/e - thay are always either at b/e or at target way before 2 weeks. So I wonder about the timings of your entries, and can these be optimised?

[admin]

well thats it....im not sur ehopw comfoirtable i am waiting 2-3 weeks before breakeven either.

But i find if im looking for a new higher lolw (in an uptrend) - or trailing a MA of some sort...it seems to take that long.

SO what do you use out of curiosity to trail the price to get you to breakeven quicker?