tight stop really work?

0

0008

I heard that many day traders (both futures and stocks) use very tight stops. Maybe 4 or 5 ticks at most. Is it really work? Would they often hit by market noises ?
 
2 cents.

You must combine your stops with your money management plan.
How much are you willing to risk per trade (%). Does the volatility in your chosen instrument exceed that?

Wiggle room.
Definition:
It's not your favorite dance club.
David


:D
 
Quote from 0008:

I heard that many day traders (both futures and stocks) use very tight stops. Maybe 4 or 5 ticks at most. Is it really work? Would they often hit by market noises ?
More...

Yes, they are taken out by noise the vast majority of the time. 98 percent of daytraders fail. Position trading is where the money is. Thank you for your time. :)
 
Quote from 0008:

I heard that many day traders (both futures and stocks) use very tight stops. Maybe 4 or 5 ticks at most. Is it really work? Would they often hit by market noises ?
More...

You can minimize the market noise by choosing the right stocks and waiting patiently for the highest probability setups to trade. If you just enter any position in any high volume stock, then you'll be subject to a lot of noise and end up churning your account if your stops are tight.
 
Quote from 1 in 100:
in many ways it would be so much easier to just ignore the great unwashed

but I won't, OP you registered in 2002

for you to ask such a elemental and stupid question speaks VOLUMES about you
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Amazing how consistent it is. You read an idiotic post that contributes nothing, and you glance up to check the idiot's username and date of registration.

Sure enough, the fool has registered within the past month.

Every time. Never fails.

Straight to ignore.

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To the OP, if you're asking this question based on your experience lately, it's obviously a wild time with a lot of noise. I personally don't believe that successful ES traders can trade their usual style with a 3 tick stop. You have to adapt in these conditions. I don't daytrade every day (and never the ES) but I've been in front of the screens for the past few days, and I've been using wide stops with 1/2 my usual size. Also see the discussion about entering in two stages and trying to enter where others have their stop.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=147017
 
Quote from traderNik:

I personally don't believe that successful ES traders can trade their usual style with a 3 tick stop.
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Interesting thought.
But what if a successful ES Trader is trading his usual style with a 3 tic stop in this market.

regards
f9
 
Quote from fearless9:
Interesting thought.
But what if a successful ES Trader is trading his usual style with a 3 tic stop in this market.
More...
If that's happening, then great, and the trader involved is very good. I assume that most of the guys who are able to do this are scalpers. Maybe one of them will chime in here and tell us that he hasn't altered his strat and that it's working out fine.

My only point is that I assume some guys are adapting their stops and position sizing on extreme volatility/high noise days.
 
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