Trading With No Stops And No Targets

Stops .....
Bye bye in one second.
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themickey said:
Not exactly true. If you are a price action trader you exit when conditions are met for an exit.
We cant predict the future, thats a known, so if you cannot predict, why set stops?
How often have you seen price hit a level and bounce or continue contrary to expectations.
Levels are seen by everyone and bluffing is part of the game.
I trade price behavior, and if it looks serious I'm out, otherwise I stay in and stay super alert until the next decision needs being made.
The whole world knows about TA and setting stops, as OP mentioned is often a mugs game.
For fast moving futures and fx, yes maybe set stops as this stuff can move very fast, but for EOD trading stocks etc, having stops is not always the best method.
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haha. no problem with different view.

different traders trade differently and have different view.
 
lawrence-lugar said:
I have no fixed Stop or Profit targets -- those parameters are for scalpers who are basically just gambling, or completely 50/50 about the future...have no idea which potential way the market will move.
My assumptions and perceptions and variables are dynamic and constantly changing.
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Lawrence,

I thought only small mom and pop retail traders (like me) do not use hard stops or profit targets.

As a retail option trader, hard stops are a problem since the bid/ask are often wide so when hard stops/profit targets are triggered I will be selling at bid, a huge disadvantage.

Do you professionals have any suggestions or advice for me?
 
What if a system shows no statistical value to use a stop gretaer than "x"?
For example, a 9% stop has a positive expectancy and a 12% stop does not for a given system.
It is surprising that price often does reverse after large negative excursioms and produce some of the largest wins but sometimes the stats indicate there is no value to allow a stop to exceed X %.
Not my opinion ....it's what it is for the type of systems I test. Open minded here
so is there a way around this?
Martingale after 12% ?
 
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ironchef said:
Lawrence,

I thought only small mom and pop retail traders (like me) do not use hard stops or profit targets.

As a retail option trader, hard stops are a problem since the bid/ask are often wide so when hard stops/profit targets are triggered I will be selling at bid, a huge disadvantage.

Do you professionals have any suggestions or advice for me?
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While I'm not a pro trader I do trade ATM options directionally. But, it is all about how the underlying security is acting, the option is just the vehicle. Entry and exit points defined by the underlying. When I enter the trade I write down my mental stop for the underlying. If it is closing (I swing trade, mostly EOD) or looks that it will I exit the option. My 2 cents.
 
sss12 said:
While I'm not a pro trader I do trade ATM options directionally. But, it is all about how the underlying security is acting, the option is just the vehicle. Entry and exit points defined by the underlying. When I enter the trade I write down my mental stop for the underlying. If it is closing (I swing trade, mostly EOD) or looks that it will I exit the option. My 2 cents.
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Thanks for sharing. Do you exit selling at market or use limit price?

Just today, I exited a trade using limit (mid of bid/ask) and was able to get out saving me some $. On the other hand another trade I tried to exit today did not go through because I could not get my limit price. So I still own it.

Someone once told me, so what if you ended up exit at bid? If you set a stop/target and it hits, get the hell out no matter what!

Which is better?

Regards,
 
DDR said:
Another fake member vying for our attention, surely no one serious about their trading would post such a pointless idea.
Simulation or not.
I refer to this post :
https://www.elitetrader.com/et/threads/trading-mentor.313758/page-3#post-4525852

dratsum said
The swamp's business model places a high value on maintaining as many members as possible. Even the most prolific trolls this site has ever seen are welcomed here. It irks me when I'm unable to ignore them.
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that's why I said :
The title

" Trading with No stops and no targets"
is not complete.

Let me complete it.

Trade with No stops and no targets so as to achieve suicidal situation.
 
ironchef said:
Thanks for sharing. Do you exit selling at market or use limit price?

Just today, I exited a trade using limit (mid of bid/ask) and was able to get out saving me some $. On the other hand another trade I tried to exit today did not go through because I could not get my limit price. So I still own it.

Someone once told me, so what if you ended up exit at bid? If you set a stop/target and it hits, get the hell out no matter what!

Which is better?

Regards,
More...

Having options, never have stops based on the options because of what you said earlier as one can have strange wide spread to trigger stop, automation always based on underlying to when to exit options for targets/protective stops. Exits based on mid point and time, so long there, then little closer to bid/ask till filled, even if it gets worse and at bid/ask, tomorrow can gap and be much worse, never know.
 
If you are milking a cow you have to have a stop after the pull on each tit and between each pull or that cow may kick your fat or skinny $ss right out of the stall.

Translation: intraday short term trading requires an abundance of stops to effectively milk the markets and not be blown right out of the play. Report card comes every day at closing.

Unless you are handle123. I believe he trades stopless intraday???
 
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