Stop Losses are for Losers

I think If a person does not use stop losses it is very dangerous
Proper sizing $ and intelligent trading and a stop loss to know how long to hold your losses,.
 
Quote from marketsurfer:

can you find that link?

thanks!
More...

Sure,

Here is a link on bankroll management. Which basically means using a conservative strategy of many "tiny" positions that scale up as you earn more. Poker players that last longer do because of the conservatism of their positions, no one position will destroy the player.

link

Here he is talking about his success and losses using this strategy:
link

So I've basically taken this to heart. Now I never take a position that is more than 1-2% of my entire portfolio. The worst I can ever lose on any one position is that 1-2% even if it goes to zero. If the markets move against me, I add more VERY SMALL positions. My entire position sizing is essentially my stop loss. This way I don't have to worry about stop losses. Going to zero is my stop loss and an acceptable loss.
 
Quote from chewbacca:

getting stopped out is basically forced liquidation


now think about it why the f--k would you allow yourself to get liquidated - unless your were fighting the trend, overleveraged, and undiversified from the very start........or you had zero confidence in the position from the start and you just put it on for the action.
More...

IMHO there is a difference between "no stop" and "a wide stop" --- the former can be a dagger through the heart on a bad day
-- the latter is almost a necessity the way the markets are moving at the moment
 
Quote from rallymode:

Spoken like a true paper trader. Perhaps you should stick to breaking out news stories and refrain from posting comments that pertain to real trading.
More...

I doubt the guy has funded a "live" account in years.
 
Quote from rallymode:

Spoken like a true paper trader. Perhaps you should stick to breaking out news stories and refrain from posting comments that pertain to real trading.
More...


I had this very same conversation over about 6 beers and a cigar with an experienced trader-friend this weekend

One day I missed 2 entries by 1 point
The next day I got stopped out 1 point on 2 trades

I was startin to suspect the folks who could see the entire electronic book were cleaning out my stops along with alot of other suckers

my trader friends remark was --- 'if you are getting stopped out by 1 point - widen your stops --- you are too granular!"
 
Quote from ProfitTakgFool:

My trading improved 1000-fold when I stopped using stops. Now I start very small and if the noise presents greater opportunity I add to it. If the trade isn't going to work it isn't going to work and I self liquidate. Not using stops shouldn't be misinterpreted as not managing risk, however. I manage risk but I take control of it. I don't leave it to the market at some arbitrary number.
More...


I tried this a couple weeks ago - and was very sad one day when the market moved the wrong way big time ---- and I could not get a fill even though I hit that freakin buttom 10 times

:-)
 
Quote from tradestrong:

Sure,

Here is a link on bankroll management. Which basically means using a conservative strategy of many "tiny" positions that scale up as you earn more. Poker players that last longer do because of the conservatism of their positions, no one position will destroy the player.

link

Here he is talking about his success and losses using this strategy:
link

So I've basically taken this to heart. Now I never take a position that is more than 1-2% of my entire portfolio. The worst I can ever lose on any one position is that 1-2% even if it goes to zero. If the markets move against me, I add more VERY SMALL positions. My entire position sizing is essentially my stop loss. This way I don't have to worry about stop losses. Going to zero is my stop loss and an acceptable loss.
More...



thanks, man. awesome stuff!

surf
 
Quote from Bogan7:

There was one notable exception where he lost over 120 mill short the S&P.
More...


he didn't lose all that money because he didn't use a stop......he lost it because he went all in against the trend and probably averaged down to the point where he was massively overleveraged..........i'm not saying a trader should marry his position......i'm saying he needs to take profits and losses based on market action and not based on $........listen to the market and follow its lead.......don't make impulsive decisions based on fear/greed.

wareco.....i've seen the light....but those are still good risk management features on days you wake up on the wrong side of the bed and want to trade for thrills.
 
"- are undiversified; they put all their eggs in one basket hence they want to protect their basket"

That's me. But I never go against the trend, and 'I never let a profit turn to a loss.' Solution.....trailing stops.
 
What? Your goal is for the stop NOT to get hit. If it gets hit, 9 times out of 10 it's going to help you. If you can define risk in a market why not put a pre-defined stop there?

In addition, what's wrong with a trailing stop?

This post has to be one of the "random thought" posts.

And you keep saying "go long a trend" like it's cake to do, and never reverses lol.
 
You must log in or register to reply here.
Back
Top