If you use stop losses then you are essentially gambling

[wxytrader]

What you're saying is that you bet so little on any one of your initial entries that you can keep adding and adding to them as they go against you without running into trouble. Therefore, if an initial entry just happens to go your way from the get-go, meaning that your assessment (or luck) was spot on, your position is so small that it's almost negligible. Stated differently, your positions become their largest when you have no clue where the market is headed, but you are at your lightest when you do have a clue.

Yeah, what could possibly go wrong?

I start legging in on the single correction and continue lagging in on the double correction (if it has a double correction) and at that point the bottom is essentially in. I prefer there is a double correction as I get to load up more shares of course.

 

[deaddog]

SLs aren't magic. They have plenty of negatives.

True there is no magic. It's one way to control your risk.
When your income comes from trading I prefer to have as much control as possible. I can only control what I do, I have no control over the market.

 

[SunTrader]

So then why ever sell? Hold .......................till the grave.

And people ask the silly question why do 90%+ of retailers that believe such horseshit lewzzzzzzzzzz in the end.

 

[Frederick Foresight]

SLs aren't magic. They have plenty of negatives.

Just like democracy is the worst form of government, except for all the others?

 

[zghorner]

I refer to it as managing and increasing the multiple of potential winners.


I think of it more of increasing position size and reducing cost basis on future winners.

You are also increasing the size of future losers.

Listen I get it, we aren't exactly in disagreement. SL work best for day trading. I do think you need a max drawdown exit though...I've been severely burned position trading by averaging...it doesn't always work out. You are probably just a better trader than me so I'm really not in any place to argue.

 

[wxytrader]

You are also increasing the size of future losers.

Listen I get it, we aren't exactly in disagreement. SL work best for day trading. I do think you need a max drawdown exit though...I've been severely burned position trading by averaging...it doesn't always work out. You are probably just a better trader than me so I'm really not in any place to argue.

Sometimes the best trader is just the biggest risk taker. I mean TA helps of course...but it mostly comes down to the process. Anyway, with an etf or index the potential of future losses is zero if you don't realize losses. If things go 2009 bad then its just another opportunity to load up.

 

[wxytrader]

Just like democracy is the worst form of government, except for all the others?

You would have do be in a democracy to know wouldn't you?

 

[zghorner]

With an etf or index the potential of future losses is zero if you don't realize losses.

Of course. Who is arguing that averaging the s&p is a terrible idea lol?

 

[wxytrader]

Of course. Who is arguing that averaging the s&p is a terrible idea lol?

Not dollar cost averaging...if you aren't down at some point then you are doing it wrong.

 

[SimpleMeLike]

Sometimes the best trader is just the biggest risk taker. I mean TA helps of course...but it mostly comes down to the process. Anyway, with an etf or index the potential of future losses is zero if you don't realize losses. If things go 2009 bad then its just another opportunity to load up.

Hello wxytrader,

Are you referring to DCA dollar cost average without stops with intraday trading futures or stocks? intraday meaning all trades close by session close 3:15pm