Stop Using Stop Losses

[Redneck]

Quote from oldtime:

Ghheeeese, you guys sure are uptight and dogmatic

find me a rule, any rule, and I will find you a good way and time to break it

Probably due to the fact every time I thought I was smarter, or found some sort of short cut – the mkt bitched slapped me back into reality

not really uptight… but definitely dogmatic and anal retentive


RN

 

[oldtime]

Quote from Joe Doaks:

I come down on Opie's side. As a system trader, I exit on signal failure, not on a fixed point stop. Unless I lose my nerve first. ET's god of trading, you-know-who, he-who-cannot-be-criticised lest mods go ball-istic, famously advocated "No stops!"

thanks Joe, actually, I only exit when profits exceed losses by a fixed dollar amount. When I close it out the staetment looks like I am a book following trader.

I just got tired of taking hundereds of small losses and decided I was willing to take the one big loss that so many dread. It comes out about the same.

But I digress, the point of the article and the point of the post was to be cautious, because IMHO the days of getting away with it are coming to an end, due to nothing more than my observation that the book traders are now even talking about trading without stops, and that can't be good for those of us that regularly do it.

 

[Redneck]

Quote from Joe Doaks:

I come down on Opie's side. As a system trader, I exit on signal failure, not on a fixed point stop. Unless I lose my nerve first. ET's god of trading, you-know-who, he-who-cannot-be-criticised lest mods go ball-istic, famously advocated "No stops!"

And lest we overlook always in

=======================================


Some of us (specifically me) ain’t smart enough to program…. soooo

I do the best with what the good Lord gave me


My stops are where the trade failed… not some arbitrary % of the net account

And reversing is always an option, just a matter of it being the next prudent coarse of action

A stop by any other name...., smells just as........

RN

 

[Joe Doaks]

Quote from Redneck:

My stops are where the trade failed

How is that defined or evidenced, the way you trade, if not by failure of the entry decision?

 

[Redneck]

Quote from Joe Doaks:

How is that defined or evidenced, the way you trade, if not by failure of the entry decision?

Defined by what price is doing

RN

 

[oldtime]

Quote from Redneck:

And lest we overlook always in

=======================================


Some of us (specifically me) ain’t smart enough to program…. soooo

I do the best with what the good Lord gave me


My stops are where the trade failed… not some arbitrary % of the net account

And reversing is always an option, just a matter of it being the next prudent coarse of action

A stop by any other name...., smells just as........

RN

yes, and as soon as I get my profit, I can hardly wait to take the other side, my downside was I got opinionated on the AUD, if I ever get out of that one alive, I will never be afraid to take the other side ever again.

 

[oldtime]

Quote from Redneck:

Defined by what price is doing

RN

and how is that any different than making a change based on account value?

 

[oldtime]

Quote from shopster jr.:

" Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money....."

the above seems to sum this thread up quite well.

say hi to your dad, he cracks me up, always enjoy his charts

 

[Redneck]

Quote from oldtime:

and how is that any different than making a change based on account value?

Not sure where this question/ comparison came from, but here’s my take


Your statement / question carries the connotation of trading one’s account…., instead of price


Notwithstanding the fact there exists too much opportunity for anxiety, and impulse to get in the way..

You are not trading price…

==================================================================


I do agree however, that after the day is through, one’s PnL is the best indicator for how you traded that day

RN

 

[oldtime]

Quote from Redneck:

Not sure where this question/ comparison came from, but here’s my take


Your statement / question carries the connotation of trading one’s account…., instead of price


Notwithstanding the fact there exists too much opportunity for anxiety, and impulse to get in the way..

You are not trading price…

==================================================================


I do agree however, that after the day is through, one’s PnL is the best indicator for how you traded that day

RN

speaking of Bluegill (or as you call them Bream) it's a little hot for that right now, we'll get them again in the fall

My grand daughter is from Africa, and she loves catching them, and no matter how small they are she takes them back to her dad, and he cleans them, because they don't let anything go to waste