How do YOU decide where to place YOUR Stop?

[actualfuturestrader]

true

I never said dont limit your loss. i said think of another way to do the same thing as your stop.

 

[actualfuturestrader]

look I never said dont limit your loss. I said think of another way instead of using a stop loss. Like an inverse etf. there i did your thinking for you.

you would buy the same dollar amount NOT share qty. but dollar amount in an inverse etf. got it.

 

[padutrader]

look I never said dont limit your loss. I said think of another way instead of using a stop loss. Like an inverse etf. there i did your thinking for you.

yes

markets do inexplicable things very often.....you have to allow for all contingencies

 

[fibo_trader]

So many ways to decide where to put an initial stop order, that all make sense. A percentage of the last charted up or down movement? A percentage of the difference between the buy in and a resistance or support or VWAP or an average? Maybe a closer stop if the entry is at a suspected rather than proven reversal? The initial stop looks to me to be nearly as important or maybe just as important as the entry point. If I am gonna be wrong half the time or even more than half the time, I want it to not hurt too bad to be wrong. But it would suck to see a lot of my trades get stopped out right before the price does what I expected it to do, and miss out on a fat win.

I think I know myself too well to enter a trade without first deciding on a definite stop level. But do any (successful) traders just wing it on bailing out of a trade, getting off the train when it seems like the thing to do?

Place STOP where nobody can find it!

 

[padutrader]

Place STOP where nobody can find it!

you are a genius!

 

[fibo_trader]

you are a genius!

No!

The real genius is trader Bruce Kovner interviewed for the book Market Wizards. He is a trend rider. So am I.

Bruce started off by placing his stops at 5%. That was quickly adopted by Ed Sekota, Finance Professor Charles Bassetti at Golden Gate Univ. San Fran.

I used to place mine far away, usually right under the 2nd last minir wave low where Goldman Sachs would likely not look. But Bruce said, "go 5% so I did". Sleep like a baby as my loss is calculated on day 1 before pulling trade trigger. Its a loss I don't give a rat's ass about losing.

That's the deal


The genius is Bruce Kovner

 

[maxinger]

Place STOP where nobody can find it!

Indeed you are a genius.
Very sensible suggestion.

 

[Peter10]

you would buy the same dollar amount NOT share qty. but dollar amount in an inverse etf. got it.

That sounds like hedging to me. you will neither loss nor gain, whey not just accept the loss and move on?

 

[padutrader]

Place STOP where nobody can find it!

everyone knows-at least the big boys- where your stop is .....so i have to modify your advice a little bit: place stop where it will be too expensive for them to run it

 

[padutrader]

That sounds like hedging to me. you will neither loss nor gain, whey not just accept the loss and move on?

hedging is very beneficial to trader who is an expert one.....most less accomplished traders do not really know when to remove the hedge.
for these traders better put a stop -IT DOES NOT MATTER WHERE
BUT for god's sake use the same technique to put the stop:if it is a tight one or a wide or below support or above resistance....do the same thing every time: then over the long term it will even out.

and be well enough capitalized or trade small for your capital so you can afford to take a few stop hits in a row.

eventually learn about the market movements so that you do not need a stop-it took me ten years to achieve this.

i know some will call me mad...but market moves are very predictable because traders will tend to buy / sell at the same place....