Quote from daniel_tysen:
Guys it's fine to have a stop-loss in place somewhere just as a protection. But if you use stop-losses as a way to actually exit your trades on a regular basis for sure you're a losing trader. It just doesn't work...but lots of pussies need those fixed stops because they're well...pussies 
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I recall a thread concerning the application of stops.
The posts fell into two groups ... pussies and heroes.
Pussies enter mechanical stops and heroes use mental stops.
Our OP is a hero, no doubt about it.
And all the more so because he is short and the Fed is long.
Perhaps he will get a spike down and cover and then again perhaps price will advance further after a brief retreat following the rth open, leaving his mental stop untouched.
Then again perhaps he will limit the damage and cover with a MO around 27.25 only to watch price tumble to 1200 or beyond.
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I put all my efforts into avoiding FUBARs.
Curiously, if we split a sheet of paper into two columns headed ...
....things we know
... things we don't know
then STOP placement would be one of the very first entries into the first column.
Starting from the STOP placement and adding/subtracting the risk, we come to the entry point ... so now we have risk contained within acceptable limits after slippage.
Heroes, I imagine are so self absorbed with the entry and the possible profit that they overlook the risk, which ironically is the one element over which they have reasonable control.
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Here are my two posts regarding stops, if you would care to read them CAREFULLY you will see where I stand on stops.
Please bear in mind that I have no interest in convincing readers of anything.
These are just some of my thoughts on the matter.
