of course preservation of cap is # 1. so if your stop is 5 dollars away and you want to risk
50 dollars, you buy 10 shares.
tight stops is for pro's, takes many many years to be able to trade using tight stops.
Here is my latest article on placing a stop. Hope it helps.
- Thread starter Andrea Wylan
- Start date
of course preservation of cap is # 1. so if your stop is 5 dollars away and you want to risk
50 dollars, you buy 10 shares.
tight stops is for pro's, takes many many years to be able to trade using tight stops.
%%I am sure this isn't for everyone. I just know it helped my client so much I thought it might help others as well.
Prefer plans/prefer profits.
But i'm a planner.
My plans for a[preplanned/resting] stop on SQQQ related stop did not work today;
so as the bids kept dropping I adjusted it/I wanted a profit more than my plan/LOL.
ABOUT the only way,Andrea, an unplanned stop could work is years of experience+ a personality that likes unplanned stuff.
[Not a prediction/not an insult]A younger trader thought he was being insulted because of a correction/LOL
ABSOLUTELY WRONG!
If you care to survive/succeed you must always "risk a little for the potential of making a lot". That means, proper entries and tight stops.... not just "give the play with a wide stop and hope you get away with it". What if your play is ill-conceived and entirely wrong... and the "wide stop" makes you lose a lot when you could have been out of the loser trade with a small loss"?
"Proper entries" is the sticking point. You must understand "Price TA" to make proper/reasonable entries.
risking a little to make a lot can easily mean 10 losses in a row, low risk = low probablity.
which is fine.
but most traders can't take loss after loss and 'do the right thing'
but whatever works for you.
BULLSHIT! Right is right... regardless. Any excuse for other is wrong!
What the HELL is wrong with you? I've always thought your posts to have reason behind them. Not this one.
lol, i'm multifaceted.
but seriously though, we're both basically saying the same thing just using a different approach.
wide stop small size, more wins, smaller wins.
tight stop normal size, less wins, bigger wins.
equals about the same profit over time. (if you understand ta / pa)
its just who wants to feel less stress by losing less (psychology)
Yeah, "wide stop" works out until it doesn't.... when you get hurt BIG!
IMV.... any trader who plays with a "wide stop" is a fool!! (That is, you don't KNOW it's correct to give the market a "wide birth"... and when you're wrong, it hurts a lot.. no reason to EVER take such risk!)
IMV.... any trader who plays with a "wide stop" is a fool!! (That is, you don't KNOW it's correct to give the market a "wide birth"... and when you're wrong, it hurts a lot.. no reason to EVER take such risk!)
Sure thing, but in reality day trading strategies with a very high risk:reward (lets say 1:3 and up) over a longer period of time are very rare, unless you are investing.
Options are a different (short term) game.
Sellers are betting, "Issue won't move enough to be profitable within the contract". Buyers are betting "issue WILL move enough within the contract to justify the play".
You can "stay" all you want. You have to pay for the "duration" you've chosen.