stop losses are for loooosers

[nitro]

Quote from vulture:

Another long worthless thread started by the ever elusive Marketsurfer.

You would think after about a dozen of these types of threads in the last few months that guys would catch on. Surfer just starts these threads to get a rise out of everyone.

BTW, if Surfer is such a great trader, then why is he pirating PTJ video tapes and risking his ass for a few bucks?

:eek:

nitro

 

[primemover]

Quote from stockerup:

Did somebody tell you that, or did you just make that up? If you are serious about that statement, I doubt you'll be around long.

It only takes one big loss and you're out for good. Did you figure that into your research?

take multiple small losses, and your out for good.

 

[primemover]

please allow a clarification. this thread is about fixxed price stops placed before entry. for instance---setting a 3% stoploss.

i have found this theory not to stand up under testing and practice.

however, time based stops have shown some validity.

 

[toe]

Everyone here is giving a different opinion without a thought for the fact that we all trade different systems, therefore we can all be wrong

I trade a mechanical system with a two or three bar memory. It doesn't matter how you set stops, fixed, volatility based, noise level, they are useless. But timeout works perfectly. So its horses for courses, a system with a longer memory may not work with a set timeout.

 

[jficquette]

Quote from plugger:

I'm going boating after work today. Anyone up for a ride. By the way, there won't be any life jackets on board and we'll stay a random distance from shore. That'll make it more interesting as we'll guess as to whether we'd be able to swim back.

Great then don't go any further than you can swim.

 

[zf trader]

I have been trading for years and have never used a stop loss order. Instead I prefer to buy options to limit downside. This prevents getting shook out of positions because of "evil market makers gunning for my stops" or other trader excuses.

 

[limitdown]

Quote from primemover:

after much research and direct hands on experience, it is my contention that fixed stop losses set at a loss, before profits are achieved by the trade, makes no sense. i have found that, often, after being stopped out, the trade immediately goes profitable. given the volatile short term nature of, say, the ES--- fixed price stops actually cause more losses than would be experienced without stops.

the emphasis on tight losing stops appears to be a creation of the market machine that needs an incredible amount of cash to maintain its own infrastructure and gets this fuel one way by fixed price stops.

uh, generally when one puts in a StpLmt for an effective stop loss order, then idea is capitulation that a position might reverse and become a loser,

so, uhhhh,
Yeah
stop losses are for losers....


duhhh

 

[primemover]

Quote from zf trader:

I have been trading for years and have never used a stop loss order. Instead I prefer to buy options to limit downside. This prevents getting shook out of positions because of "evil market makers gunning for my stops" or other trader excuses.

well said, and smart strategy

 

[toe]

zf trader I've always wanted to try that, glad to know it works. I wonder whether it can be incorporated into a mechanical system.

 

[kubilai]

Being long and buying puts to hedge the position is the same as buying ITM calls alone. The second approach is better I think since it reduces commission costs, and saves capital for other investments. It works nicely as a stoploss at the strike price with absolutely no slippage. You do pay a premium though depending on how deep in the money you go with the calls.