Quote from Mins:
The way to use tight stops IMO is to make sure when you enter you know at what price you original entry is wrong or invalidated.
This way you get very nice entries based on your plan and you can use 2-3 pt (ES) tight stops without getting hit by the noise.
Whenever i enter a trade i see what level my entry is no longer valid short/long based on my plan and therefore i can use a tight stop. I will therefore only enter at a price in which my stop (usually 2-3pts) will be outside the level where my plan dictates that trade is negated.
I have found many times that if you jump into a trade impulsively that your stop has to be larger for the original entry to be invalidated. Avoid being impulsive and simply play the probabilities.
There is no need for large stops in day trading as markets like the ES are very efficient in some respects. Entry to me is what matters most in trading.
