To stop loss or not

OptionsOptionsOptions said:
Options don't need a stop.
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Well, that’s my theory as well - reduce position size instead, but I was surprised how large the DD was and how long it took to recover compared to stop loss method. Granted, we may never see 2008 equivalent in our lifetime.
 
qlai said:
Well, that’s my theory as well - reduce position size instead, but I was surprised how large the DD was and how long it took to recover compared to stop loss method. Granted, we may never see 2008 equivalent in our lifetime.
More...

So March 2020 did not happen?
 
only Stops if your Selling ie shorting options, otherwise I've had them go to near Zero then back to 500% profit on some SEC news over night :)
 
unless you are perfect in your market read-or you trade options- you need a stop.

stops fix your loss and what you pay for the option fixes your loss, should it occur

it took me 13years to get my read correct and i lost money all 13.

that is quite a high price to pay.

and even if you are perfect, in your market read, you need a wide stop .....what is called a catastrophic stop: to stop a 9/11 type of black swan from wiping you out.

you can only read what is already written and the market can change on a dime
 
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