100% Guaranteed Way to Blow Up ANY System

[Kensho]

Trading and investing is really not all that difficult. There is really only ONE way to blow up any system and if you don't know what that is then you shouldn't be trading.

 

[HarbingerQ]

trading without a stop, not stopping after 7 losses to reassess

not being hedged

not accounting for black swan

listening to advice on ET .....:eek: .....oops

 

[NoDoji]

 

[Kensho]

Only amateurs use stops. Pros never need them.
Hedging with options costs too much money. Going to cash is the best hedge. Amateurs hedge, pros just raise cash.

 

[HarbingerQ]

Quote from Kensho:

Only amateurs use stops. Pros never need them.
Hedging with options costs too much money. Going to cash is the best hedge. Amateurs hedge, pros just raise cash.

You don't know what you are talking about man

Not every stop is placed so close that your broker or HFT can hunt for it.

If you don't have a stop how are you to protect yourself in massive sell-off 9/11 style.

You are full of bovine excrement

 

[SIUYA]

Quote from Kensho:

Only amateurs use stops. Pros never need them.
Hedging with options costs too much money. Going to cash is the best hedge. Amateurs hedge, pros just raise cash.

so the only way to blow up is not be able to raise more cash because you did not use stops and have margin calls???

 

[Kensho]

Stop losses are for losers. Just by simply not using stops your trading will improve tremendously because you will find ways to truely reduce risk.
I've used stops on every single trade for YEARS and all I did is run up huge commissions/slippage costs that bled my account constantly. Stops offer a false sense of security. Its a form of risk management that simply hides/masks true risk.

 

[RedTankEra]

Quote from Kensho:

Only amateurs use stops. Pros never need them.
Hedging with options costs too much money. Going to cash is the best hedge. Amateurs hedge, pros just raise cash.

Bullshit.

 

[NoDoji]

Quote from Kensho:

Stop losses are for losers. Just by simply not using stops your trading will improve tremendously because you will find ways to truely reduce risk.
I've used stops on every single trade for YEARS and all I did is run up huge commissions/slippage costs that bled my account constantly.

Wait a minute.......are you saying that there's a broker who doesn't charge commissions if you don't use stops???

 

[Kensho]

If you believe use of stop losses is proper risk management then you probably also believe the "trend is your friend" fairly tale too. And no, I'm not advocating RTM strategies either as there is no inherent edge with that approach either.