It has been our experience that the more specific, brief and direct that we can make our postings, the more succinctly traders can understand and then use the information on a trade by trade basis. It is in your best interest, therefore, to not only become very familiar with the abbreviations we use, but also how they should be applied.
All traders know that on whichever side a trade is initiated, that trade must be exited via the opposite side. For example, if entering the market on buy side, the exit must be accomplished via executing a sell order for the same lot size as the initial entry in order to return to "flat" or no position. However, in an active trading environment this may become confusing if we post a buy as an entry and a sell as an exit. It would require further clarification then if we only wanted to sell some and hold some of this initial buy and even more clarification if we now mean to sell short.
Therefore, our posts for a buy or a sell will be for the entry phase only and would denote the trade, the entry area/level and the direction. A buy would obviously be for entering the market on buy side for an expected move higher and a sell is for entering the market on sell side (short) for an expected move lower. The exit phase for any given trade would merely be denoted as TSP (take some profit) or TP (take profit) as appropriate. It is our view that this keeps it simpler and in essence less confusing while we can safely assume that competent traders can understand the taking profit phase will be doing the opposite of the entry in order to exit the initial trade (see Exits).
***Please note: we will NEVER post a buy above where the market is currently trading and will NEVER post a sale lower than where the market is trading at the time of such post. If this is confusing, you need to watch a while longer.
As to exits, conservative exits are for newer traders or traders trading smaller size and it is still a good idea for all traders to exit at least a portion of any size traded (preferably 2/3rds) at the conservative exit or 2 or 3 ticks in front of the TSP given. Why? Because it is the sure thing. The remainder of any size traded may be carried to any expected further target in that same direction with a break even stop (b/e) from the initial point of entry. (See Stops)
Exit targets or levels are described as "take some profit" (TSP) for an interim target or "take profit" (TP) for a final target. If no conservative exit is given then the first TSP target should be used to pare out 2/3rds of any size traded with the balance held with a break even stop for any potential, subsequent target. Whenever a target (price level) is given either for entry or exit, it is not necessary to enter or exit more than two or three ticks away from such a level.
For example, if there was a hypothetical posting for an 1110.00 BUY for an 1120.00 target, the highest price entered for such a buy should be 1110.75 (preferably 1110.50 or better) and an exit should be planned at 1119.25 or 1119.50. Any price target may be achieved (hit exactly) or even traded through, but we do not attempt to "get the last tick" out of any trade. It is more important to be filled on both ends of the trade, especially when trading larger size.
Due to the accuracy of our postings and in the interest of risk management, it is not necessary to "dog pile" or panic in or out of the market any further than .75 or .50 from any target posted. Conversely, waiting for a target to be achieved "to the tick" or working any entry or exit too deeply in order to "get that last tick" may often result in such an order not being filled. Far more will be made capturing nearly every swing available throughout the day when confidently trading larger size with manageable risk than can ever be achieved by attempting to "get that last tick" regardless of size traded and trading in the manner described herein will be the safest way to learn to ramp up your size over a reasonable amount of time.