I never exit a position win lose or draw based on pricewhat is a stop?
stop is an exit from the position which exhausted its possibilities
everybody exit positions like that, sooner or later
some people use stop orders in advance (not a preferred method for a daytrader), others put orders manually as the situation develops
semantics, in that case there is no difference between a stop and a profit target, and I use neither. You know, some people take profits or losses based on other things than the market. Like a daughters wedding, or a college education, or a retirement home. (or in my case beer and cigarettes)
sorry
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no actually, that is money management. Over the years I got lucky on nothing more than the mantra "Cut your losses short and let your profits ride" and at times I thought was a very good stop setter (since that's all I cared about, I had very little interest in my profits), but in the end it just became more money management, and stops were based on nothing more than how much to risk? And it came out about the same. And to this day I don't know if it works or if I just got lucky. But I doubt it enough today to no longer play that game with serious money.
what is a stop?
stop is an exit from the position which exhausted its possibilities
everybody exit positions like that, sooner or later
some people use stop orders in advance (not a preferred method for a daytrader), others put orders manually as the situation develops
