IMV, stops are crucial for everybody.
The #1 most important factor in the success of one's career as a trader.... "the losses you don't take".
Stop losses. Are they the tools of winners or losers?
- Thread starter peilthetraveler
- Start date
IMV, stops are crucial for everybody.
The #1 most important factor in the success of one's career as a trader.... "the losses you don't take".
I am intrigued that there is disagreement on stops. I would never have suspected that. Even more intrigued that everyone believes trailing stops out perform profit objectives.
Disagreements on trading fundamentals go hand in hand with inexperience.
The more experience that exists amongst traders then the closer becomes their agreement on market behavior, no matter what time frame they are trading.
This is what betrays inexperienced ET posters more than anything else.
Trading without stops with a small account
I think this was posted elsewhere
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/vIMwMsY0ndo&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/vIMwMsY0ndo&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
Can you trade without stops?
Yes. Use a tiny % of an extremely large account. eg. a 1million account to trade 1 es contract.
If you have a small account, should you trade without stops?
Depends on your systems profit factor.
I think this was posted elsewhere
<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/vIMwMsY0ndo&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/vIMwMsY0ndo&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
Can you trade without stops?
Yes. Use a tiny % of an extremely large account. eg. a 1million account to trade 1 es contract.
If you have a small account, should you trade without stops?
Depends on your systems profit factor.
Price naturally gravitates to execute the most resting orders (limit order = stops), most of the time.
IOW, the market moves to fuck most of the people, most of the time.
Even good, big traders (relative to liquidity) are vulnerable to stop running if their orders are left with the broker, IMO.
Of course stops are for winners. As far as trading goes, not investing, you must use stops, whether you use hard or mental ones that's another story.
You see the majority of traders place stops below S and above R, that is assuming they have a clue as to what S or R really is. And that's precisely where stops are hunted time after time.
Stops are not evil, your stop locations are.
You see the majority of traders place stops below S and above R, that is assuming they have a clue as to what S or R really is. And that's precisely where stops are hunted time after time.
Stops are not evil, your stop locations are.
Stops are a guess like other decisions. "Just beyond S/R" is a proper place, but "how far" beyond? You don't want them so close that yours gets hit when they gun for the stops or on "false breaks". Stops need "S/R + a buffer"... how big of a buffer is the art.
If one has a genuine edge the stop is part of the strategy .There is no perfect strategy that has no stops.
Base line stops should never be more than 1% of your capital per trade.
Personally, I have a predetermined stop for each trade...get pissed when I get tipped and reverses,but I also recognise a small loss is great...the alternative not so great
Quote from Now is Now:
If one has a genuine edge the stop is part of the strategy .There is no perfect strategy that has no stops.
Base line stops should never be more than 1% of your capital per trade.
Personally, I have a predetermined stop for each trade...get pissed when I get tipped and reverses,but I also recognise a small loss is great...the alternative not so great
Yes we agree but just because a stop is wide does not mean it must be beyond your 1% risk.