I would like to hear your thoughts on exit strategies. I have a strict rule on all my exits in intraday trading.
I look to scale out half of my position as soon as the Dow gives me +10 (approx 1pt on the emini S&P) and scale out another quarter at +20. The final quarter is where I try to make my money and I consider it luxury.
Some of you may have different rules for exits or targets. Do you prefer to scale out at specified target? Are youre exits all discretionary, based on indicator signals, pivots, or based on a fixed amount of points/dollars?
For any new futures trader, I usually recommend them to trade a minimum of two contracts. Most people would recommend one. But from a psychological point of view, missing out is worse than being stopped out. A 1-lot trader is forced to cash out alot more quickly than a trader that trades multiple lots.
This is why I recommend a new trader to begin with at least 2 lots. The first lot is to simply eliminate risk (yes.... sounds ironic). The second lot is to make profits.
Any thoughts on this?