How do YOU decide where to place YOUR Stop?

In my opinion, I feel there is more to stop loss than a specific formula. It can never replace or be used as a substitute for good trading and one should decide based on many factors. For example, placing your stop when you feel that the market would before a major news release
 
Stop placement will depend on the strategy and your tolerance of Draw Downs. This guy has some good points for scalping.


Disclaimer: I post his stuff a lot here, so I don't want people to think I am pumping his stuff or insist on this method ... It's just that his stuff is very relevant to the way I trade. Just sharing a perspective I agree with. Hope you find it useful.
 
It is simple for me- you set a few rules to execute your stop loss order, and over an extended period of time you test its performance against an alternative choice or no application at all. The statistics result will decide what your should follow in the future.
 
fibo_trader said:
I can do better. When I travel to your part of the world, I will take you as a guest with me and we will make a video of all the antelopes we brought down.This will also include the rejections too. I see you are in India. I have no dolls in your neck of the woods but 2 in Goa.

We can stay at Taj Fort Aguada, get a villa in Taj Holiday village for each of us and have a ball. On the house, you would be my guest. Paradise for white chicks, but I go for local stuff.
Get ready for goan grub.
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I'm sure you two will have a great time! ;) I noticed you have already decided where to get villa. Have you already been there? How did you find this place? I'm going to Goa next year, that's why I'm interested. Usually I find all necessary info for my trips on https://travelsites.com/, but it would be great to read about real people's expereince. Thanks in advance!
 
sfwind said:
Depend on your risk tolerance, position size and level of diversification. But it is not a science, otherwise, it would be too easy. Use the chart as a reference, but understand that everyone is looking at the obvious level. First loss is always your best loss, most of the time.
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This is exactly what I've experienced in the E-Mini markets. Position size has a huge impact on the factors going into the stop loss placement. When I am dealing with 4 ES contracts, my stop is pretty close to market....and most times I am stopped out. With 2 ES contracts, it's quite different....I do pretty well with a higher win percentage (60%+). Diversification is something I have not pursued...sometimes I'm in a position with both ES and NQ...sometimes in opposite directions. Not enough trades like this to make an inferences.
 
qlai said:
Stop placement will depend on the strategy and your tolerance of Draw Downs. This guy has some good points for scalping.


Disclaimer: I post his stuff a lot here, so I don't want people to think I am pumping his stuff or insist on this method ... It's just that his stuff is very relevant to the way I trade. Just sharing a perspective I agree with. Hope you find it useful.
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thanks for posting
 
GrowleyMonster said:
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?
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place so far away from other traders' likely stops as to feel thoroughly lonely
 
ntwadumela said:
place so far away from other traders' likely stops as to feel thoroughly lonely
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Is 50% away from the actual price far enough? You will surely feel lonely and you will probably never get stopped out. But when you get stopped out you will really understand what lonely means. As nobody will help you out. :D
 
schweiz said:
Is 50% away from the actual price far enough? You will surely feel lonely and you will probably never get stopped out. But when you get stopped out you will really understand what lonely means. As nobody will help you out. :D
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divide by 10.
5% is so far away its an island
 
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