Are stop losses impossible to fully adhere to?

J

jpvil123

As we all are aware of, levels are taken out on purpose many times. How can we use stop losses at these levels? and if not there then where? This is just my opinion and I would like to see what others have to say about this dilemma. Thank you
 
speedo said:
The implied question is how to avoid losses, you can't....accept them. There is no perfect place to put stops and no good time to pull them.
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Then to me the only way to win would be winners having to be much higher on the risk:reward ratio to circumvent the losses (it's also funny how the ones which would require bigger stop losses don't get hit as often as ones that are tighter and provide less risk). It's almost as if the market rewards risk.
 
jpvil123 said:
Then to me the only way to win would be winners having to be much higher on the risk:reward ratio to circumvent the losses (it's also funny how the ones which would require bigger stop losses don't get hit as often as ones that are tighter and provide less risk). It's almost as if the market rewards risk.
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Everything has trade offs. Balancing risk and reward is part of the art. The goal is simply to be profitable.
 
speedo said:
Everything has trade offs. Balancing risk and reward is part of the art. The goal is simply to be profitable.
More...

I agree,
Newbies want everything spelled out for them in black and white.
There's a whole lotta Grey in trading; it's part art, part science.

They'll soon discover, it's a long and lonely road to profitability. -- Well it was for me, anyways. It helps to listen to good music along your journey,
;):p
 
Are stop losses impossible to fully adhere to?

Only to the extent one lacks discipline

================

Each trade could be the one that blows out the account - except for the loss taken

Till one learns this to their core - taking a stop will always be in question..., especially with the benefit of hindsight - which only serves to exacerbate the insidious loop of not taking a loss till its painfully large


RN
 
jpvil123 said:
As we all are aware of, levels are taken out on purpose many times. How can we use stop losses at these levels? and if not there then where? This is just my opinion and I would like to see what others have to say about this dilemma. Thank you
More...


You need to compromise.
 
No, most of the time stops are not directly taken out, it is indirect although both have the same end result so people obviously gravitate to the one that makes them feel better. If it's indirect in most cases it's your inexperience and you have no-one to blame but yourself. Actually if it's direct it's also inexperience but most people feel better lying to themselves that it wasn't their fault by blaming someone else.

The markets love pure confidence and help strip you of capital if you have anything less. You can be confident with a 20% of account stop, or confident with a 0.5% of trade stop, but most will place stops due to insecurity not confidence. Then it really doesn't matter where you place the stops, the markets will with pinpoint precision happily relieve you of that capital.

It's all about money finding the best home, and if you place your trades, and therefore your stops, in the wrong place that home will be with someone else who has more confidence. Survival of the fittest, money makes money, and all that jazz!
 
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