Quote from deaddog:
When someone says that using a stop is giving my money away, I wonder if I could do something different and still be able to stay in the game.
Not protecting my capital with a stop is something I have a great deal of trouble comprehending. Iâm not saying it isnât possible just questioning how much risk is involved.
Another reason I ask is personal experience with traders that "work their way out of trouble". I have known several and they all seem to have that one bad day that wipes out a few months gains.
How do you control risk?
I don't know where you get the idea I don't use stops, I've said
repeatedly that I'll close out positions without hesitation if my risk limit is reached.
This all started when Pippi questioned my risk:reward and suggested he would have closed a particular trade earlier, supposedly with a traditional stop at xx pips from entry. It was in reply to a
post of yours about setting exits when the trade is entered that I replied 'sure if you like giving money away' because
in my experience that approach is too inflexible in this market.
I've also explained, numerous times, that there should never be a time when there's a risk of excessive loss or a situation when "...
one bad day that wipes out a few months gains.....", it's all in this thread, if you want to know just read it.....or don't, totally your choice.
The idea in trading is to be exposed to as little risk as possible which is exactly what I attempt to do and I've found it effective.....for me.
Instead of repeatedly asking the same questions it might be more productive to read the replies I've already given and then ask other questions if you need to. Alternatively just carry on using whatever it is that you're comfortable using and be happy with it, really it makes no difference to me.
