Passage to $1 Million

Obviously, you don't want to have a stop where your account is going to get wiped out.

My theory on stops, is:

a) If you are right in the entry of the trade, you don't need a wide stop and it can be somewhat standard. For example, market is trending hard in your favor with little or no pullbacks.

b) You can also have a stop set at a place where for example it would suggest that the trend has either reversed or one did not analyze the market correctly in the 1st place.

c) Analyze of the market was correct, but timing could have been off, for example you are trying to get in on a breakout to the upside and entry is near top of range, however, the market wants to go down and get more shorts trapped 1st before going back up and making new highs. In this case the stop could be similar to one you are suggesting in that it could be tight to get you out at a small loss while you wait for your next trade setup.


Quote from NoDoji:

My stop is never placed where the market proves my belief is wrong. You see, my belief can be very right. I may enter a short position believing price will reach 77.31 and present me with a specific amount of profit. And price will very likely reach 77.31 at some point, but it might head to 89.73 before coming back to my target. So my belief may be absolutely correct, but my account might be wiped out before my belief became reality.

So my stop is placed where the market proves my trade in my working time frame no longer has the risk:reward ratio necessary for me to be consistently profitable over time.
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looks like Smiles is gone, his facebook trades haven't been updated since july 29... I guess he realized the game is over.
 
i heard he was flying over africa, jumped out of the plane, wrestled two lions, ate a hippo, and ended up on shark week battling a great white!
 
Quote from bigb:

i heard he was flying over africa, jumped out of the plane, wrestled two lions, ate a hippo, and ended up on shark week battling a great white!
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LOL
 
Interesting thread. With your current speed, on a compound MM the balance after ten months should be way beyond the initial 1 mln. target - somewhere around 6.6 mln.
So you only have to keep up the good work.
Wish you luck!
 
Quote from NoDoji:

A stop is placed at the station where you want to exit immediately because you realize you got on the wrong train. No worries if this happens; another train will come along.
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Speaking of getting on the wrong train, also remember: ""If you board the wrong train, it is no use running along the corridor in the other direction." - Dietrich Bonhoeffer

:)
 
Quote from TheRed:

Interesting thread. With your current speed, on a compound MM the balance after ten months should be way beyond the initial 1 mln. target - somewhere around 6.6 mln.
So you only have to keep up the good work.
Wish you luck!
More...



haha, once again a praiser pops ups with one post even though the thread has been dead for the last few weeks. Sorry man, but real people on ET are not this nice unless you just happened to find all of them magically and got them to post for the first time
 
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