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TTWSX102 · 08-12-2004, 20:43

I read that large institutional traders do not use stop losses because if they did they would move the market. Is this true? If so they must monitor the market constantly. I can see how it would be possible though. I am currently using a trend folowing system and my stops never even come close to being hit as I get an exit signal before then. I would never trade without using stops myself just from a psychological standpoint but can the market really move that far that fast and completely wipe out a large account? With the number of players in forex it seems unlikely.

08-12-2004, 20:43	#1
TTWSX102 level 1 Join Date: Apr 2004 Posts: 38 Downloads: 0 Uploads: 0 Rep Power: 0	No stop loss I read that large institutional traders do not use stop losses because if they did they would move the market. Is this true? If so they must monitor the market constantly. I can see how it would be possible though. I am currently using a trend folowing system and my stops never even come close to being hit as I get an exit signal before then. I would never trade without using stops myself just from a psychological standpoint but can the market really move that far that fast and completely wipe out a large account? With the number of players in forex it seems unlikely.