I think it is a bit extreme to say stops are for loosers,,,
there should be a strategy for each situation,,,
for instance,, I have a system that doesnot require stops (wiew sample in www.colective2.com/go/catordow)
also I have another system that works with stops, but, they are proffit taking stops and those may kick me in and out in a trend, most times making me less money at the end of the trend than if I had stayed in it full time,,, How do I know whats going to happen,, at least the few pips I get each time are there,, in my account.
I trade futures and cash,,, up and down,,, my system allows me to be in the market full time if I wanted to,, all my work is choose the right timeframe at the right time and follow signals,,,, the stoploss becomes normally after a couple of dingdongs too close in time,, then I know Im in a trading zone,,, which means I must STOP the trading,,, analize the situation,, change timeframe to a tradeable one and off I go again.
I consider stoploss in essential for anyone that does high frecuency trading with an all in one strategy,,, entry,exit and stop,, (bracket orders) used with different settings according to the ability and the wealth of the trader; I rather lose very little a few times and try again for the good go.... calm before the storm.. the good trade is there for you to catch it.. and youll want to put in more contracts next time,,,, if you lose 2 or 3k, you will want to rethink about your strategy.
If someone uses indicators to get buy/sell signals,, then the stops should really be to reverse the position or to take part of the profits the same as with other signals to put in more contracts.
Propper stop levels are really difficult to decide and only having worked out a good strategy you can put your stops in a manner that you will not be kick out unnecessarily and what is worse, losing money.
all the best
Rafael (spain)
there should be a strategy for each situation,,,
for instance,, I have a system that doesnot require stops (wiew sample in www.colective2.com/go/catordow)
also I have another system that works with stops, but, they are proffit taking stops and those may kick me in and out in a trend, most times making me less money at the end of the trend than if I had stayed in it full time,,, How do I know whats going to happen,, at least the few pips I get each time are there,, in my account.
I trade futures and cash,,, up and down,,, my system allows me to be in the market full time if I wanted to,, all my work is choose the right timeframe at the right time and follow signals,,,, the stoploss becomes normally after a couple of dingdongs too close in time,, then I know Im in a trading zone,,, which means I must STOP the trading,,, analize the situation,, change timeframe to a tradeable one and off I go again.
I consider stoploss in essential for anyone that does high frecuency trading with an all in one strategy,,, entry,exit and stop,, (bracket orders) used with different settings according to the ability and the wealth of the trader; I rather lose very little a few times and try again for the good go.... calm before the storm.. the good trade is there for you to catch it.. and youll want to put in more contracts next time,,,, if you lose 2 or 3k, you will want to rethink about your strategy.
If someone uses indicators to get buy/sell signals,, then the stops should really be to reverse the position or to take part of the profits the same as with other signals to put in more contracts.
Propper stop levels are really difficult to decide and only having worked out a good strategy you can put your stops in a manner that you will not be kick out unnecessarily and what is worse, losing money.
all the best
Rafael (spain)