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KPcurrency · 28-12-2004, 16:41

I've seen some good posts by you up to this point. Although I do not trade Elliot/Fibonacci, I do think there may be some underlying structure of the market that Elliot /Fibonacci is close to capturing. Profitable trading is not a function of knowing said structure.

Anyway that is not what this post is about. If one was to follow your logic about stop losses, one would have to conclude that a system with no stop loss is best. The numbers would bear this out, but, and this is a big but, most traders do not have unlimited funds and therefore would run the risk of ruin before a system could be profitable.

If I had all the money in the world, I would not need a stop loss. Now, if you lose 50% of 100.00 you lose 50. But to get back to 100 dollars you have to win 100% on next trade... That's why we use stops.

28-12-2004, 16:41	#71 (permalink)
KPcurrency level 3 Join Date: Dec 2004 Posts: 257 Rep Power: 0	smurf I've seen some good posts by you up to this point. Although I do not trade Elliot/Fibonacci, I do think there may be some underlying structure of the market that Elliot /Fibonacci is close to capturing. Profitable trading is not a function of knowing said structure. Anyway that is not what this post is about. If one was to follow your logic about stop losses, one would have to conclude that a system with no stop loss is best. The numbers would bear this out, but, and this is a big but, most traders do not have unlimited funds and therefore would run the risk of ruin before a system could be profitable. If I had all the money in the world, I would not need a stop loss. Now, if you lose 50% of 100.00 you lose 50. But to get back to 100 dollars you have to win 100% on next trade... That's why we use stops. Last edited by KPcurrency; 28-12-2004 at 16:45.