Who said you have to risk more to position trade?
tight stop really work?
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Who said you have to risk more to position trade?
Quote from short&naked:
Who said you have to risk more to position trade?
As I said, it is just me.
my reasons are....
. increased overnight margins.
. weekends. Do you really want to be long over a weekend.
. close to close days that yield bugger all points, or worse still reverse against your trade, when it would have being a nice profitable intraday.
The exception to this was the 'carry trade'
But as I say, this is just me.
regards
f9
Yes, forex is a bit more forgiving for position trades.
Stops that are too tight will give the trader a false sense of security as they believe they are keeping losses to a minimum. Unfortunately, it also creates more decision making. The less decisions that have to be made, the more chance of success. It's better to lower the position size and trade with a correctly placed stop and make less trades/decisions. Never rosk mor thanh 2 percent of TLNW and you'll give yourself a much better chance. 
yes tight stop works. like 2-20 point stops. super small like 1-8 ticks doesnt work usually, unless you are prepared to scale out and let winners run.
stops larger then 20 only works when your swing trading. but swing trading is more dangerous then daytrading.
stops larger then 20 only works when your swing trading. but swing trading is more dangerous then daytrading.
It also depends on the volatility of the markets and how well they respect technical levels.
This is just another of those threads that typify peoples lack of understanding of just what it is that they are trying to achieve.
Everything in a Day Trader's strategy must relate to something (price behaviour).
True, there are a few absolutes in a traders life such as yesterday's hi/lo or todays open etc etc but this is because they can no longer be effected by price behaviour.
They have passed the test.
They are fixed in time.
A day Trader does not have this luxury.
To be effective and efficient he/she must by fluid at all times and their stops will naturally reflect this mindset.
And so back to the question "tight stop really work?"
The answer is "it all depends"
... what is price doing right now
... what is considered tight
... what bar size are you looking at right now etc etc ...
I know that ET'ers are seeking answers to specifics concerning their trading style, but be aware that any one change to your strategy will effect everything.
If I were to pass on any one little piece of information that I have gained in the last twelve years it is
"think from the top down, but look from the bottom up"
regards
f9
Everything in a Day Trader's strategy must relate to something (price behaviour).
True, there are a few absolutes in a traders life such as yesterday's hi/lo or todays open etc etc but this is because they can no longer be effected by price behaviour.
They have passed the test.
They are fixed in time.
A day Trader does not have this luxury.
To be effective and efficient he/she must by fluid at all times and their stops will naturally reflect this mindset.
And so back to the question "tight stop really work?"
The answer is "it all depends"
... what is price doing right now
... what is considered tight
... what bar size are you looking at right now etc etc ...
I know that ET'ers are seeking answers to specifics concerning their trading style, but be aware that any one change to your strategy will effect everything.
If I were to pass on any one little piece of information that I have gained in the last twelve years it is
"think from the top down, but look from the bottom up"
regards
f9
4-5 ticks (pips... etc. etc.) would work if you are comfortable with scratching a trade.
All about the entry.
4-5 ticks (pips... etc. etc.) is an major outlier.
Seriously... that's what stops are for (you're placing a limit against outliers...)
If stop orders are a placed to trigger yourself to let go of a trade, you're not fit for trading.
All about the entry.
4-5 ticks (pips... etc. etc.) is an major outlier.
Seriously... that's what stops are for (you're placing a limit against outliers...)
If stop orders are a placed to trigger yourself to let go of a trade, you're not fit for trading.