Do you use a stop or no?
- Thread starter EliteTraderNYC
- Start date
you get it!
you get the leverage, plus, you still have the control.
if you want to hit big, use leverage is a must. but do not borrow money from soneone who can have condtions on this borrowing, use the borrowed money to enter a position, then the lenders want money back immeadiately, that is a disaster.
smart people are the same! only fools are different!
you get the leverage, plus, you still have the control.
if you want to hit big, use leverage is a must. but do not borrow money from soneone who can have condtions on this borrowing, use the borrowed money to enter a position, then the lenders want money back immeadiately, that is a disaster.
smart people are the same! only fools are different!
Quote from NoDoji:
Think about it logically:
There's no real loss until it's a realized loss.
An unrealized loss can become an unrealized profit at any time, thereby making you whole again!
Ergo, if you use a stop you're placing your account at risk of loss and we all know that risk management is critical!
Yeah, yeah, I know there are those of you thinking "the OP specifically referred to intraday trading; how to you deal with that???"
Keep in mind that although good traders often talk about the importance of using stops, really great traders have learned to be flexible instead. If you've put on a trade with the intention of closing the the day flat, and price is not in your favor just prior to the close, there are ways to handle this without the risk of placing a stop in the market or closing for a loss.
1. Set an alarm for 10 minutes prior to the close.
2. When the alarm goes off, quickly check the Yahoo message boards for confirmation that your position is right, but the timing's just a little off.
3. Look for at least two other opinions similar to yours. If you find at least two, simply turn the position into a swing trade. (Be aware that swing trades can last from a couple days to several months.)
Occasionally, many months may pass without your position becoming profitable. The truly adept trader knows that when this happens, one can simply shift the trade into a long term investment.
Remember, there's no need to place your account at risk by using stop loss orders once you learn to be flexible with your time horizons.
Plus, there is a key mechanism in place that automatically protects you should things go drastically awry: Broker liquidation
that's so mean, Donna
I was implying that 4-4:15 pm timeframe is a stop for intraday time period, so for ES that leaves max loss of any day within the past 20 years about 8% or so.
I don't trust stops, they tend not to trigger for me in the past, any fast price movements will blow past my stop. I would rather manually exit, however you will have to be disciplined enough to do so.
I dont know what products u trade. But I think that if a price moves through your stops so fast that it doesnt trigger or work properly, I doubt that you will have success manually exiting either. Just my opinion. I always put a stop in...its also easier to manage other positions with a stop in.