Hard Stop loss

T

Timc

Hi,

I just want to know if other traders have same problem in having the hard stop loss in your order system and then see your trade got stop and then stock reverses immediately.

If so, any suggestions on how to deal with it. I do not want to use mental stop....it does not work for me. I tend to give it more rooms or even worse, I add more positions to my losing trade, then I will loss more than I want to. Let say I plan to risk $100 for my trade, with mental stop, I may lose a lot more

I really appreciate all your help

Thanks

Tim
 
Options, if you absolutely insist on no stops.

My only question is how you exit if you never want to use a stop or decide mentally, as that seems to be most of the ideas.
 
How about this. instead of entering where you normally would, buy at what would have been your stop loss point. Keep in mind a great deal of the trading info like "hard stop loss in your order system" is designed to benefit those who profit as your churn your account, not the trader - they want to make as much as they can before the trader washes out.

Timc said:
Hi,

I just want to know if other traders have same problem in having the hard stop loss in your order system and then see your trade got stop and then stock reverses immediately.

If so, any suggestions on how to deal with it. I do not want to use mental stop....it does not work for me. I tend to give it more rooms or even worse, I add more positions to my losing trade, then I will loss more than I want to. Let say I plan to risk $100 for my trade, with mental stop, I may lose a lot more

I really appreciate all your help

Thanks

Tim
More...
 
Or, learn about MAE, check out 3,000 of winning trades in your back testing and see how far against your position price went, get rid of area you can live and still make overall profits. Or figure out better ways to enter.
 
CyJackX said:
Options, if you absolutely insist on no stops.

My only question is how you exit if you never want to use a stop or decide mentally, as that seems to be most of the ideas.
More...

Absolutely right. Trade an options spread with a worst case scenario equal to your stop. Limits the upside, absolutely, but the number of people who churn themselves to death with tight stops is enormous.
 
Small stops are fantastic especially at low timeframes, there's a trick to limit exposure from being whipsawed out, but you can try testing onclose manual stops with your strategy. Why would you willingly want to give the markets your capital, that's delusional. Oh of course, by using an imperfect strategy and widening the stop to account for it. You'll want to work on your discipline, plan the trade and trade the plan, otherwise it's the fast way to exponential decay of your capital.
 
Handle123 said:
Or, learn about MAE, check out 3,000 of winning trades in your back testing and see how far against your position price went, get rid of area you can live and still make overall profits. Or figure out better ways to enter.
More...

Handle123 is correct and I am using this approach for all my trades in practice.

There is no easy answer for the OP concern. As we all have seen this countless of times. Price comes right to your stop and reverse. It's part of the business. If you use a mental stop and you fail to exit the trade, you will take a big loss and your performance data will be skewed. Respect your stop loss.

If you are constantly getting stop out, you have 2 options : 1. Pick a better entry 2. Increase your stop loss distance from entry.

Ideally, you want to test for the optimal stop loss per the market and style you are trading.
 
killshottrader said:
Keep in mind a great deal of the trading info like "hard stop loss in your order system" is designed to benefit those who profit as your churn your account, not the trader - they want to make as much as they can before the trader washes out.
More...
FALSE
 
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