Rule

[boskop]

If you set a stop-loss, do not close the position without that very stop-loss hit first.

I tattoo that one onto my forehead right now. And then I mount a mirror in front of my face so I see it all the time.

What rule have you got tattooed on you?

 

[Big AAPL]

The very same rule. However, there is a disclaimer: It states that " Unless it's clear that getting out now will minimize my losses before said stop will clearly be hit".

 

[hoodooman]

When I first started trading with a computer, I tried stop loss twice and got my head slammed both times. Once with Waterhouse and once with Datek. Long time ago.

 

[jimmyjazz]

If you set a stop-loss, do not close the position without that very stop-loss hit first.

I tattoo that one onto my forehead right now. And then I mount a mirror in front of my face so I see it all the time.

Can you clarify? Let's say you're bullish on the underlying -- and you're right. You're up 10% but you think the trade has run out of steam. You don't take profits but wait until your original stop is taken out?

That can't be what you're saying.

 

[Brianharvey]

SImply Can't resist/
Long ES 1940.5

 

[boskop]

Can you clarify? Let's say you're bullish on the underlying -- and you're right. You're up 10% but you think the trade has run out of steam. You don't take profits but wait until your original stop is taken out?

That can't be what you're saying.

Right.. what I mean is, once you decide for your stop-loss to be at a certain level, and then put the order there, it should be carved in stone and unless something absolutely special happens, like Big AAPL indicated, it's a no-go to close the position prematurely based on anything price action makes you believe.

 

[boskop]

SImply Can't resist/
Long ES 1940.5

Right, for the last years going long equities proved to be a great rule too!