How to determine trading stops?

[AXIA FUTURES]

We have just had a month with our traders on the desk discussing risk management protocols and how that relates to sizing and stop placement given the perceived conviction of the trade. There are many other layers such as the recent momentum of your form leading into a specific day and the added complexity that has on your psychology and hence traders often shift their trading stops subjectively. Would be great to hear peoples view on placing trading stops. Here is a video where one of our Senior mentors on our desk discusses “How to place a stop”. Be great to populate this thread with peoples process and framework in an area under appreciated but most critical to a success of a traders career especially for the survival part in the first 24 months of trading.

 

[deaddog]

it boils down to know when you're wrong and know what to do about it.

 

[Peter8519]

1. Money e.g. 10% down... out.
2. Time e.g. didn't go anywhere for the past 3 months
3. Technical e.g. break support

 

[Bad_Badness]

it boils down to know when you're wrong and know what to do about it.

The quintessential two part solution. Having the first is not enough.

 

[murray t turtle]

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ALL of the above .
Price + 50 day moving average, 50 dma slope,50 week moving average........Kick out the worst gainer even if its profitable for you.

 

[Arnie]

I would also look at MAE to see if their are patterns in the stocks you trade.

 

[murray t turtle]

it boils down to know when you're wrong and know what to do about it.

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THAT;
seasonal stuff also helps in stocks, ETFs.
By the way, a hound dog is gifted with a nose/ within 50 feet /the hound dog can tell which way a rabbit or bear is going, by sniffing tracks,