Hard Stop loss

[Buy1Sell2]

If you're stopped out, just get back in if it goes in your original direction. Keep your stops close. Successful trading is one of the easiest things a person can do. -----Most people are not able to trade successfully.--Ishmael

 

[W.J. Feathermaker III]

That sounds more like a Yogi Berra-ism.

 

[qxr1011]

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.

when that happens - its a trader's mistake.. he incorrectly identified the strength of the support-resistance (hence the reversal), because he incorrectly chose the time frame-to play-it-out in (hence the wrong stop-loss)

I do not want to use mental stop....it does not work for me

make it work if you want to make money

but if you think that mental stop is more flexible that hard one you mistaken

the advantage of mental stop - you do not show others your order, that can be exploited...

If so, any suggestions on how to deal with it.

from the above follows: you have to choose the correct time frame in which to asses S/R and to put your mental stop, and correctly identify where it supposed to be in this time frame = definitely not on the same level as would be in smaller time frames

but mistakes happen , so in this case i would recommend immediately to reverse the position along with the market (but make sure this reversal will be played-out in the correct time frame or you will loose again)

Let say I plan to risk $100 for my trade,

you should asses the risk in points of the price movement , and then if you have only 100 buck to loose to chose the appropriate size of your position in accordance with the number of points at risk...


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alright , i think that's it for me here - 999 is good number to stop

good luck to everyone

 

[profitlocker]

alright , i think that's it for me here - 999 is good number to stop

good luck to everyone

You too sir. I've really enjoyed reading your posts. I'm thinking of retiring out of here myself. I wish you good health and fortune

 

[killshottrader]

FALSE

"...A traders' income is not the bid-offer spread, but the micro-squeezes that take place. Markets move from squeezes to squeezes. Traders make money on stop losses and other free options."

http://merage.uci.edu/~jorion/oc/ntaleb.htm

Was largely true then, is true today with different tools.

 

[Buy1Sell2]

"...A traders' income is not the bid-offer spread, but the micro-squeezes that take place. Markets move from squeezes to squeezes. Traders make money on stop losses and other free options."

This is incoherent

 

[qlai]

One suggestion I can make, that I have not heard yet, is try to learn how your broker handles stops. What exactly triggers a stop? Where does order get sent? How long is the lag? Dont assume. You can also try using OCO where one is stop limit and the second one is market stop at worse price. So if price runs through your limit stop, your market order gets executed and the limit gets cancelled. Although I'm not sure if your broker will allow it. While I use mental stops myself, I was able to place such order on my equities platform.