Trading with a Stop Loss in the Futures Market is for Losers

Quote from Visaria:

I know a trader who is short the DAX from 6000. The dax is currently 7682. He told me he's going to use stops from now on :D
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Hello visaria. No long no chat.
 
the real problem with stop loss is once it is hit, traders think the world has come to an end.. they lack the guts to get back in one way or the other.
 
Quote from mspkash1:

the real problem with stop loss is once it is hit, traders think the world has come to an end.. they lack the guts to get back in one way or the other.
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Exactly! And if they get back in they get stopped out again, and they're even more afraid than ever.
 
If you make money on the first trade. good.

stopped out of the second trade. likely breakeven, since most futures traders get out after +2 and stop at -2.

third trade is the kicker....if they lose, odds are they need to have the next two trades winners to be profitable after commissions.

same logic for days of week. if lose money on Monday... they will likely have to be profitable 2 days in a row to not go broke. if 2 days during the week are unprofitable, 3 straight days of gains might not get them out of the hole.

solution? watch all week....do maybe 1-3 trades. risk 5 to make 15. or risk 10 to make 20.....
 
Quote from Tradethoven:

LOL, if your stops keep getting hit your not trading the right spots. You dont understand market profile and noisy area's.

Rookies who think they know everything dont use stops, and usually get blown out within the first month of trading.

Continue to not use stops, sir. Thanks for my afternoon laugh.
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Cannot agree more. Trading means finding the optimal balance across all your algo parameters. In an ideal world, you wouldn't need them, but no system is perfect, so they are indeed essential. Those who claim otherwise probably don't know what a 2-percent drop means for an e-mini futures trader... :)
 
Here is an interesting article:

http://www.chicagotribune.com/busin...-data-leak-20130424,0,4124230.story?track=rss

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HFT will stop small traders out. HFT will blow small traders far away.


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More than 90% of small traders lose! They just lose!





http://www.bloomberg.com/news/2012-...-seen-profiting-at-small-firm-expense-1-.html


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Chickens (small traders) are coming home to roost
 
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