Episode 127: Remaining Focused With Absolute Clarity (aka Managing a Winning Trade Once It’s Open)

by robbooker on February 25, 2013

Play

In Episode 127, Rob Booker and Jason Pyles bring you a State of the Podcast Address, where Rob announces some recent award recognition that we’ve received (thanks to you — our listeners). We also talk about starting a Traders Podcast Network and an intriguing, upcoming podcast guest for Episode 128!

Next we move into the theme of this episode, which is how to successfully manage a winning trade once it’s open. Rob and Jason discuss staying calm under pressure, the fight-or-flight defense mechanism, our tendency to gravitate toward the familiar, why the mere passage of time makes us nervous — and most importantly, Rob’s three-step plan for staying in your trades. You don’t want to miss this one — it’s a hoot!

Links for this episode:

FX Street.com’s Forex Best Awards 2013

TFL365.com

Rob on Twitter: @RobBooker

The Traders Podcast on Twitter: @TradersPodcast

E-mail us! Producer@TradersPodcast.com

{ 6 comments… read them below or add one }

daniels February 25, 2013 at 5:00 pm

Great podcast! Can you make one about probabilities and how to make them bigger? i know new traders make mistake with bad risk reward ratios, but i think my probabilities to hit limit is to low because of high risk reward ratio. On average i have 1:3 to 1:4 risk reward ratio.

Oh… And why you are not responding on e-mail? i have send questions, but nobody is answering. Hope to get answers!

Reply

Scott Welsh February 26, 2013 at 12:46 am

Count me in for the Traders Podcast TV show! I’ll even show my chest hair! -Scott

Reply

Scott (the-ecohouse) February 26, 2013 at 6:53 pm

Talk about feed-burner being completely unreliable, last week 887, 460 yesterday now it 987 crazy!

I second other Scott’s suggestion a Traders Podcast TV would be great…not sure about the chest hair though?

I autotrade a number of “exotics” such as feeder cattle and lean hogs within a diversified futures portfolio system, a few HPLR options on stocks, but mostly FX nowadays

Cheers

Scott

Reply

Dan C February 27, 2013 at 6:45 pm

Hi Rob, Jason, and all guests

I want to say thank you for hosting such a wonderful podcast related to trading. I have been trading the foreign currency markets for a couple years now and I absolutely love the discussions here at the TradersPodcast. As a new resident to Los Angeles, the podcasts have been a lifesaver, entertaining and educating me through the absurd traffic home from work. Please continue to update with your excellent interviews and discussions, I have yet to find a podcast that did not thoroughly excite me.

-Dan

Reply

Brian March 14, 2013 at 8:11 pm

I also have a long commute, and I have gone back through the podcast and found some real gems. When some idiot is swerving around you, you lose focus and miss the good stuff. I also believe that because of the medium, we lose some of the medium. For example, when we text or email, our meaning can be missed and we can really make people mad because they don’t put what we write in the context that it was intended. I am going through the casts again, and there are really some gems in there that I missed the first time through.

Brian

Reply

Kevin February 28, 2013 at 11:18 am

Hey Rob and Jason,
always enjoy your podcast on my commute — its like trader porn LOL.

I wanted to add one more thing to your list of what-to-do once a trade is open. I agree with everything you said. But there is one more thing I do… that is to move my stop up continually to lock-in profit.

Currently I’m trading on Daily and sometimes Weekly timeframe. It can be slow-going when the market is grinding. I have a technique I use to determine the “how much?” question:

First, I always trade with a breakeven trigger point. After my trade is filled, I set a breakeven at 2R, my first target at 3R, and then a “stretch target” of usually 6R or better (depending on my discretion). So after my trade reaches the breakeven point of 2R, I move my stop to the entry. After that, I watch the price action and move the stop up to lock-in more profit as it continues to move in my favor. The amount of my lock-in is equal to the distance between my breakeven trigger point and my entry (in my case 2R).

A friend once told me a great way to figure out where to place the breakeven trigger point. He said: it is at the point where you would feel uncomfortable giving back what you’ve gained. In other words, you have to look at the trade unfolding, and envision the future — how would you feel about this trade turning into a loss? At some point you have to say NO, and set your breakeven point. For me, the 2R level feels just about right. Plus it is very satisfying to reach the breakeven trigger point — it means your trade is a free-ride from that point on.

Kevin

Reply

Leave a Comment

Previous post:

Next post: