Quote:
Originally posted by TTWSX102
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.
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In a ranging market why use stops?
I imagine big institutions could afford to average or use a martingale strategy but then I think about 'Barings Bank' and guess they probably don't. Nick Leeson always claimed that if the bank had supported his open positions they would have made money, the Nikkei did eventually turn.
Thinking outside the box can be profitable as well in my opinion.
Mick