ES Journal Archive (2006 - 2008)

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Quote from JSSPMK:

So if you can withstand 30 handle move against your position based on whatever event that MAY take place & by saying that justifying canceling your initial hard stops, then why would you question my usage of soft stops? Maybe I haven't made myself clear, like most rational people I do subscribe to the code of protecting capital. Of course I do have an ultimate stop where any trade is stopped out, but like Mr Chan has said, these stops are emergency stops.

I think some people, not you personally, discount money management. There are traders that regularly put all their eggs in 1 basket by overcommiting to 1 trade, I don't do that.
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OK, I get your point. I would say this, that I always have a hard stop during RTH. It's just during the after-hours trading where light volume predominates that I cancel.

And I do put my stop in the nature of a "fail-safe" type of stop. If I believe my position won't work, I get out. By "won't work", understand that I'm referring to a bigger time frame.

OldTrader
 
Quote from Mins:

I think your missing my point. All i was concerned about was someone risking small amount like me usually 2 pts then without a hard stop i know this risk can turn to 4pts quite easily.

I am talking about a single trade here. There is no way certain people are getting the exits they claim imo.

Example, you have a long entry, and stop zone is 1.5-3 points lower. Trade moves no where and then a single 1min bar rips down 4 pts.
At what point does you soft stop get hit. Do you wait for price to move up slightly and get a favourable exit or do you use you soft stop immediately and exit at -4pts.

Also, how do you exit, do you use a limit order? All factors considering slippage will cost you even more.

This is simply what i am getting at. I can understand completely traders who use wide 10-15 pt stops using a soft stop.
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It's to do with money management, I think I've answered that already.

I don't know where Volente has gone, you don't win a fight by not answering a simple question.

Volente's rule of stopping trading for a day after 1 single trade goes -3 is typical example why I can afford to have a soft stop which is within a certain area & he can't. I can have 2 or 4 or 5 losing trades trades which total loss may be equal (percentage loss) to Volente's loss after 1 trade. Basically same damage percentage loss to capital but after multiple trades.

P.S. Only market orders to exit
 
Decent resistance at 2045-2047 on NQ and a little bit at 2040-2041. Other than that I don't have much of a game plan for the day... this markets run farther than I anticipated. I'll just be trading the divergences when they show up.
 
Quote from OldTrader:

OK, I get your point. I would say this, that I always have a hard stop during RTH. It's just during the after-hours trading where light volume predominates that I cancel.

And I do put my stop in the nature of a "fail-safe" type of stop. If I believe my position won't work, I get out. By "won't work", understand that I'm referring to a bigger time frame.

OldTrader
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TY! I am sorry to bring this up, but 9/11 took place pre-RTH & we certainly don't know what the future holds. I recall you leaving a long position over the long weekend & removed stops, perhaps you did have emergency stops though, it just sounded as if you had no stops at all.
 
I could write these sentences bellow.
From time when I stopped use tight hard stop I am profitable.

Quote from Lawrence Chan:

To further explain that,

1. my disaster stops are at least 10 pts away from the entry price.

2. my real stops are much less than that

3. it takes a lot of discipline and experience to pull the trigger on #2.

So if I fail to do #3, #1 save my a** :)
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Deep hard stops

I am missing something here.
If you have a deep hard stop but never use it, then what is the point of the stop.

If you have a deep hard stop in place as an emergency only, then be aware that it will probably require a trend change to take it out and your brave little stop will be in standing front of a charging herd.

Call me old fashioned but is it not better to have your stop on the same side of the market as you are trading.
If it gets touched as all good stops should from time to time, then it is more than likely it will be touched lightly.

regards
f9
 
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