2 ways, maybe 3 ways? to protect from massive loss trading futures...here they are

[increasenow]

2 ways, maybe 3 ways? to protect from massive loss trading futures...here they are:

#1-Enter a positon and then use a stop loss order...acts like a market order once your price is hit

#2-Use the 'maximum $$$ loss amount" feature on your trading plaform..this way if your stop loss is blown through..this would get you out also...

#3-cannot think of any other way except not trading


EXAMPLE:

You are long 1 ES contract...bracket stop loss (market order when price hit) 3 points below currect price...and enter 'max $$$ loss feature' of $200...so if your stop loss is blown through...the max you can loss is $200...this is 100% assured...correct?

 

[TudorJones]

Quote from increasenow:


#1-Enter a positon and then use a stop loss order...acts like a market order once your price is hit

3 steps for even greater trading returns:

#1) Never place a stop order

#2) Always be shooting, never have a max stop limit for the day. Because you just never know when something can go ballistic.

#3) If you are not risking it, your money is being inflated away.

 

[SWhiting]

You could, particularly if you are a position trader, buy an option in the opposite drecton of your position.

 

[TudorJones]

Quote from SWhiting:

You could, particularly if you are a position trader, buy an option in the opposite drecton of your position.

Why not buy 2x option positions, so that you can profit more even when you are wrong. ??

 

[syswizard]

Quote from increasenow:
2 ways, maybe 3 ways? to protect from massive loss trading futures...here they are:
#1-Enter a positon and then use a stop loss order...acts like a market order once your price is hit

Sounds simple....but you must be great at knowing exactly WHERE to place that stop loss order.
Otherwise, you will still get to that category of "massive loss"....it will just take more time, that's all.
Tight stops with Index Futures practically guarantee a poor win/loss percentage.

 

[jgalt7]

Quote from TudorJones:

Why not buy 2x option positions, so that you can profit more even when you are wrong. ??

wouldn't this make some sort of synthetic strangle :eek:

 

[mokwit]

Make sure the Put is in a market liquid enough to quoted when it goes deep ITM - I got caught out that way in HSI.