Scratching means getting out of a trade at a small profit/breakeven/small loss as you feel the trade is not moving as you expected. You are avoiding a stop out.A scratch trade is often a winning trade because it will get you out of the market before the price turns against you
1.If price fails to break FTA I will consider scratching the trade.Depends on a)how strong the rejection from FTA is. b) Origin of the move. I will not hurry to scratch in case of a BOF.For TST and FTC I will act fast. 2.Price reversals rarely happens without testing a trouble area I rarely risk more than 10 points. Yes, I will enter beyond the latest swing point if RR is still favourable
whats scratching the trade mean?
ReplyDeleteManjunath
ReplyDeleteScratching means getting out of a trade at a small profit/breakeven/small loss as you feel the trade is not moving as you expected.
You are avoiding a stop out.A scratch trade is often a winning trade because it will get you out of the market before the price turns against you
ST
ST,
ReplyDelete1. When do you decide that a trade needs to be scratched? How much room do you give a trade to play?
2. If a trade goes against you immediately after entry, what do you do? Do you ever consider reentering a scratched trade?
Augu Bhai
ReplyDelete1.If price fails to break FTA I will consider scratching the trade.Depends on
a)how strong the rejection from FTA is.
b) Origin of the move. I will not hurry to scratch in case of a BOF.For TST and FTC I will act fast.
2.Price reversals rarely happens without testing a trouble area
I rarely risk more than 10 points.
Yes, I will enter beyond the latest swing point if RR is still favourable
ST
ST,
ReplyDeleteThanks for the clarifications.