Stop losses. Are they the tools of winners or losers?

[crgarcia]

Quote from peilthetraveler:

I dont use stop losses, but some people freak out on here when i tell them that. They say that the majority of traders lose money, but i notice the majority of traders in here use stop losses... Im wondering if there is any relation. I've only ever met 1 guy that makes 7 figures per year trading and he doesnt use stops either (and its worked well for him the 20 or so years he has been trading) So i just want to get some honest information out of you guys.

If you make 10 trades with 10 stop losses, on average, how many of those trades get stopped out? I'm suspecting that its a higher percentage (like 50% or more) so i just want to be sure.

Stop losses?

Why not:
When in trouble double?

With leveraged ETFs you can double, or even triple without risking a margin call.

 

[sosueme]

Quote from ES.Dreamer:

I look for elastic action after I add to the initial loser. If I don't get it, I'm probably wrong and take my loss.

A 911 stop is a stop you use at all times to protect yourself from unfortunate events, they are wide, they hurt, but they don't destroy your account.

ESD

when you start trading with a real money account, your posts will reflect more maturity

 

[ES.Dreamer]

Quote from sosueme:

when you start trading with a real money account, your posts will reflect more maturity

Whatever you say.

ESD

 

[r4Nd.m]

 

[Nexen]

They say a picture is worth a thousand words.

I've always said this is the proper way to back your claims or defend yourself in ET, simple screenshot and done.

You are a player ESD.

I assume you just trade ES based on your nick ?

Nexen

 

[Cavity_Search]

Quote from Nexen:

They say a picture is worth a thousand words.

I've always said this is the proper way to back your claims or defend yourself in ET, simple screenshot and done.

You are a player ESD.

I assume you just trade ES based on your nick ?

Nexen

 

[AK100]

If you don't use a stop or some other risk based caluclation then how can you know and understand your potential risk?

And that's why the majority haven't got a chance in this game because they never even contemplate the business is all about risk.

 

[DrEvil]

Is it just my imagination or does the subject of 'cutting your losses' get considerably more attention on ET than 'letting your winners run'?

 

[sosueme]

Quote from Cavity_Search:

yes, that is trading ET (Entertainment Today)
style.

When will people realize that in order to make real money, they must trade a real account.

 

[Handle123]

I think the use of stops should be based on your style of trading and the backtesting of your method. My "style" of day trading is complete opposite of my longer term trading of letting profits run.
So if in my backtesting shows risking 6 tics to make 8 tics works to make money, so be it. I am not good in day trading of letting profits run, I have a daily goal of 2.00 points, then cut back size 90%.

But I think stops are crucial for the beginning trader, otherwise many would be wiped out in a few weeks.