Are stops a complete joke ?

[dave4532]

Quote from logic_man:

"Big winners", or the top 10% of profitable trades, basically make up the entirety of my profits. The other 90% of winning and losing trades sum up to about break-even, so I agree that you have to catch the big winners to be profitable.

If you sum only your big winners that make up the profit in its entirety, on the average, how does that sum compare to the sum of losers?

 

[brokenmarkets]

some traders have no losing days. and never had losing day for 20 years.

Quote from dave4532:

If you sum only your big winners that make up the profit in its entirety, on the average, how does that sum compare to the sum of losers?

 

[rgilbert93]

Quote from the1:

Are you serious? A stop limit at 49.80 for example. The stock trades at 49.85 and a big block comes through and sends the next tick down to 49.75 and you're screwed if the stock keeps falling from there. Always use a stop market order and trade liquid stocks that allow you to get out close to where your stop is.

Give me 1 example where this happens, and I'll give you 10 where a stock drops, and you sell it at market, 5 % below the last quote- and then the stock immediately bounces back up. If you are so obtuse to invest in a stock that would dive a few dollars in seconds, you shouldn't be investing anyways.

Have fun shaving 1-5% of your profits (atleast) by using market orders.

 

[NoDoji]

Quote from No.Heat:

A trader that knows how to enter is either right and takes very little heat or gets stopped out because he was wrong.

My suggestion to you is to keep studying price structure until you find these high probability areas of extreme reaction points.

Read these words carefully, most here speak senseless dribble with no value, this is one of those posts you want to save for the future if you still lost in the price bars.

This is true, but you're referring to some very advanced tactics. A beginning trader can learn much more easily to wait patiently for setups, accept losses, let winners run and basically end up net profitable without mastering the tactics you're referring to. Not that I would dissuade anyone from putting a lot of sweat into mastering this way of trading.

It's also important to understand that when these areas are found the high probability is in the reaction and not in the outcome. However, once the reaction is obtained, you can eliminate the risk and it's a free trade.

Absolute nugget of gold here.

 

[logic_man]

Quote from dave4532:

If you sum only your big winners that make up the profit in its entirety, on the average, how does that sum compare to the sum of losers?

All three numbers (losses on losing trades, top 10% of winning trade gains and other 90% of winning trades) are about the same number, although, of course, the sign on the losses number is negative.

 

[jack hershey]

Quote from logic_man:

All three numbers (losses on losing trades, top 10% of winning trade gains and other 90% of winning trades) are about the same number, although, of course, the sign on the losses number is negative.

Learn to vary your stops according to market pace (pace is a volume term).. this will lower your losses and move most of the 90% small wnners to larger winners.

Your quest for the rule you asked about for stops has been answered in this thread.

when you move out of intermediate (after you go dynamic with stop offsets by volume PACE), then you can consider expert which obviates having to have losses. there you will change fractals for trading and begin to recognize that money is made on all price movement and that requires a hold/reversal orientation which is a long way off for most posters in this thread. It looks like no one so far is in that genre.

 

[Jack Nestle]

Quote from jack hershey:

when you move out of intermediate (after you go dynamic with stop offsets by volume PACE), then you can consider expert which obviates having to have losses.

So we are now to believe that not only do you take 3x the daily trading range, but that you have eliminated all losses. As usual, I am sure you are not prepared to back any of your statements up with facts are you.

 

[bone]

"Learn to vary your stops according to market pace (pace is a volume term).. this will lower your losses and move most of the 90% small wnners to larger winners."

Not only "No", but "Hell No". I have never before waded into a Jack Hershey post, but this one is far too egregious to let go. Completely acinine statement.

 

[deadbroke]

Quote from bone:

"Learn to vary your stops according to market pace (pace is a volume term).. this will lower your losses and move most of the 90% small wnners to larger winners."

Not only "No", but "Hell No". I have never before waded into a Jack Hershey post, but this one is far too egregious to let go. Completely acinine statement.

acinine replaced with asinine or for more emphasis, assinine.

 

[logic_man]

Quote from bone:

"Learn to vary your stops according to market pace (pace is a volume term).. this will lower your losses and move most of the 90% small wnners to larger winners."

Not only "No", but "Hell No". I have never before waded into a Jack Hershey post, but this one is far too egregious to let go. Completely acinine statement.

Fortunately, there was never a chance I would even consider taking that advice! I've read enough of his posts to know that there's nothing in anything he says which would add any value to my trading.