The Break Even Stop is a Psychological Crutch for Newbies

[murray t turtle]

That's absolutely correct Murray! Folks are too focused on win rate and not focused on making money.---Ishmael.

%%
I prefer a nice win rate, when possible LOL: but making money+ dividends also.

 

[Buy1Sell2]

Disagree.

Stops are to preserve capital and their exact placements are subjective.

Some are more logical that others, but the basic point is to "not let losses run too much against you". No science to it.

I believe you misread my posting.

 

[murray t turtle]

if you're afraid it is going to turn on you, just close it out

why wait to be stopped out at a worse price?

if you were smart enough to get into that winning trade then you are smart enough to know when it has run it's course

breakeven stop is the same as "playing with the casinos money". That's what gamblers who know they are playing a game they cannot win do. If I believe in my strategy there is no reason for me to suddenly start moving stops. They were good when I put it on, and now they are so far away they have become meaningless.

%% Good points; included but not limited to ''suddenly start moving stops''LOL
BUT COUPLEof exception$ to your good plan.
a]IF 80% or 95% of my fears tend to get me out of a trend WAAAAAAAAy to early ; consider the 20 % or 5% also.
b]Breakeven is really a word game for small loss; unless one live in dad's basement + he is paying the power bill/food bill .
Actually i prefer some word games myself .LOL I prefer to label an account blow up or loss as ''education or if CPA + IRS agrees; business exspence'' .Interesting thing about IRS; they prefer to audit big earners, no wonder. IBD posted the latest audit figures; low audit =about77k; highest audit over $10 million AGI.
c]Good way to make a profit, far away stop, or buy on DB[German bank] whine on overvalued stock$.LOL-LOL[cd] i have bought a cd...... more than any gov bonds; but so many SEPT have sell offs, i may tighten up a stop ,S-L-OW, SEPT. NOT a prediction ;DB may lose ''value/price'

 

[Pension_Admin]

Stop at breakeven? Sure why not? It has no cost other than the commissions. It actually gives you an edge by clearing the emotion from your head. As well, you can always jump back into the position or get into a better one.