stop losses are for loooosers

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.
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Then only trade after it dips and comes back up, if that's what you are experiencing. This works with stocks.
 
Quote from 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.
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The reason that I use a synthetic call instead of buying one outright is that the underlying instrument is usually much, much more liquid than the option. This gives me the the chance to trade during congestion effectively instead of needing a run to get out of a illiquid option position.
 
Thanks for mentioning the good reason for using a synthetic call.

Was going to argue that in the call scenario you can short and exercise, but there's the uptick rule and some shares are hard to borrow.
 
Quote from primemover:

take multiple small losses, and your out for good.

:)
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Not so. If you have a system that works 50% of the time. Small losses offset by large gains results in net positive.

You sound extremely immature as a trader. Maybe you need to go back and read some more books-- that is if you're around much longer.
 
Quote from lancillotto:

Hi all,

In my experience I have to agree that stop losses increase total losses of the systems.

Of course it depends on wich type of trading system and wich type of money management rules you are using, but if you are using a short short term system on stocks(not an intraday system) and you risk maximum 3% of the equity, it's better for you not to use stop losses, otherwise stop losses will literally eat all your capital.

This is not in theory, but in my own experience.
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Your stops are eating your capital as a) they are too tight, or b) your entries suck.
 
Quote from stockerup:

Not so. If you have a system that works 50% of the time. Small losses offset by large gains results in net positive.

You sound extremely immature as a trader. Maybe you need to go back and read some more books-- that is if you're around much longer.
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You seem quite immature you too. You're forgetting how many trades would have resulted positive but stopped before that ?

Perhaps you should read some math books on top of the books you've already read...
 
all i know is..i tried the no stop thing long ago...and lost alot doing so..u watch it go against u...dont worry...more it goes against u..u start to worry..but when its SOOO far against you your too hurt to pull out...its a downward spiral to the wealthfare office..(or whatever you americans call it)

USE STOPS..just try get the market to tell u where to put it..dont just go..max ic an lose is..50 dollars..so thats my stop..let market tell u to put your stop :)
 
Quote from science_trader:

You seem quite immature you too. You're forgetting how many trades would have resulted positive but stopped before that ?

Perhaps you should read some math books on top of the books you've already read...
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may i suggest this site and a book by the same name for mister stockerup. www.innumeracy.com /

:)
 
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