Actual data supporting no use of stop losses

deaddog said:
LOL...Well you can't make a trade. LOL!!
But regardless...
I assume you are asking how I handle gaps. I have a plan for that. Sometime I get caught and end up taking a bigger loss than I planned for. I take the capital I have remaining and put it to work somewhere else. No averaging down, no positions in my portfolio that are underwater!!
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Yes but over time the math tells me that is a losing prospect.

100 shares @ $30
Avg down 100 shares @ $25
Avg down 100 shares @ $20

Shares: 300
Avg price: $25
Pnl @ $30 = $1500

Versus stop loss:

100 shares @ $30
Stopped out @ $25
100 shares @ $25
Stopped out @ $20
100 shares @ $20

= -$1000

Shares 100
Avg price: 30 (100 *20=2000 + 1000= 3000/100=30)
Pnl @ $30 = 0
 
NoahA said:
Although I agree that a method needs to suit the emotional and mental makeup of the trader, isn't Cohen only successful because of insider trading? If his entire wealth rests of access to information, then shouldn't his "teachings" carry no weight?
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Who? He's made so much money in trading that he's going to share his secrets with all of us for free???? Oh wait he's charging money lol.
 
wxytrader said:
Yes but over time the math tells me that is a losing prospect.

100 shares @ $30
Avg down 100 shares @ $25
Avg down 100 shares @ $20

Shares: 300
Avg price: $25
Pnl @ $30 = $1500

Versus stop loss:

100 shares @ $30
Stopped out @ $25
100 shares @ $25
Stopped out @ $20
100 shares @ $20

= -$1000


Shares 100
Avg price: 30 (100 *20=2000 + 1000= 3000/100=30)
Pnl @ $30 = 0
More...
LOL Funny math LOL
What about the times it doesn't recover?
What about the times it takes off to new highs and you only have a partial position?
Different strokes as they say. I'm not comfortable with drawdowns so I keep them as small as possible.
How long are you willing to let the position sit underwater while other opportunities present themselves.
 
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wxytrader said:
As Noah said what's he going to teach us how to open up a hedge fund and then get privy to all this Insider knowledge? Lol
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upload_2024-5-14_15-33-7.jpeg
 
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wxytrader said:
Yes but over time the math tells me that is a losing prospect.

100 shares @ $30
Avg down 100 shares @ $25
Avg down 100 shares @ $20

Shares: 300
Avg price: $25
Pnl @ $30 = $1500

Versus stop loss:

100 shares @ $30
Stopped out @ $25
100 shares @ $25
Stopped out @ $20
100 shares @ $20

= -$1000

Shares 100
Avg price: 30 (100 *20=2000 + 1000= 3000/100=30)
Pnl @ $30 = 0
More...
LOL...
You wouldn't be able to convince a 6 yrs old kid with that example.

There are more than one ways to make money with trading (not investing!). Good for the ones who can make money without Stop Orders.
But saying that one way of trading is stupid is just another way to show to everyone how clueless you are (or show I say closed-minded).
 
rb7 said:
LOL...
You wouldn't be able to convince a 6 yrs old kid with that example.

There are more than one ways to make money with trading (not investing!). Good for the ones who can make money without Stop Orders.
But saying that one way of trading is stupid is just another way to show to everyone how clueless you are (or show I say closed-minded).
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One example is clearly better than the other. Lol
 
NoahA said:
Although I agree that a method needs to suit the emotional and mental makeup of the trader, isn't Cohen only successful because of insider trading? If his entire wealth rests of access to information, then shouldn't his "teachings" carry no weight?
More...
Good Morning NoahA,

Agree. Steven Cohen made money by cheating.

He an edge that makes money each trade with no losses.
 
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