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Old 23-02-2005, 17:58   #22 (permalink)
el cid
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Re: Let's give "stop hunting" a rest

Hi Folks

Traders can learn to use options.The best options to buy are under 4 days left to expiry , and at the money.The less time there is to expiry ,the lower the cost.

The alternative is trade with limited risk ,using a hedged strategy which is not fully hedged.

Many years ago I used to trade Dow Futures .I placed a stop loss/limited risk bet.In the morning I was told the position had been closed overnight,as the broker ran his own book trades (which did not have to correspond 100% with the market),and trades were placed on the brokers bucket shop which wiped my position out.It was a $5,000 night out with robbers.

I have never since used stop losses

El cid
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