Stop Loss poll

[Athalon7]

Originally Posted by TRADE

stop losses are only a necessity if you plan on being over leveraged and trading too huge a position size too close to the markets action.

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I have to agree here. If you are trading small enough, stops are not needed. And the biggest reason is this: Brokers hunt stops. Make no mistake about it. Its you against him. Why give him your hand?

You know what the daily ranges are and what the worst case daily scenario is. Is it dangerous? Yes, but not more than shouting your intentions. In a huge one second move the spread is going to go out of sight anyway so you lose nonetheless.

If you must use stops, use an EA or script and not the broker.

[TRADE]

Originally Posted by Athalon7

I have to agree here. If you are trading small enough, stops are not needed. And the biggest reason is this: Brokers hunt stops. Make no mistake about it. Its you against him. Why give him your hand?

You know what the daily ranges are and what the worst case daily scenario is. Is it dangerous? Yes, but not more than shouting your intentions. In a huge one second move the spread is going to go out of sight anyway so you lose nonetheless.

If you must use stops, use an EA or script and not the broker.

indeed, just stay in control of your risk and be disciplined enough to execute when the time comes...trade enough units/shares to maintain comfort if the market moves against you.

I agree with stop hunting also......this could make a good strategy if you knew where the majority of stops resided..

[yukiko61]

Wow, TRADE, sounds like you hold positions for a while.

[TRADE]

Originally Posted by yukiko61

Wow, TRADE, sounds like you hold positions for a while.

yes, longest I have been in is 14 months, but I am building positions slowly, I allow myself to be wrong, I give myself a huge amount of room for error, I do not predict the exact turning points of the market, this is extreamly difficult over the long term and at best just another gamble and difficulty traders face in the market,

I try to turn every element of the market to my advantage and timing is one that nearly everyone gets wrong, the majority of the time.

I am not saying that what I am doing is the way to do things, in isolation, but utilised correctly, and under strick money management rules trading with no stops is viable, why wouldnt it be...??

ok there will always be a point where I am completely wrong, but I dont need to place a SL order with my broker to exit, I just exit and usually well within my risk, I am out before I lose all the capital I was willing to risk on the trade.

[yukiko61]

If you're making a living, who could argue? You and Andy Kressler would have a lot in common I suppose.

[ee.fxfx]

setting ur stop loss depends on a lot of things...there are a lot of ways u can assign ur stop losses...1st the question arises how much are you willing to lose on a single position...stop loss varies from trader to trader...if u are a intra-day trader ur stop loss will be diff from a long term trader...

u can assign stop loss based on charts, time frames and % of equity u can afford to lose on a single position...

[CuongVC]

Hi All,

I see there are different ways in using SL & TP:
(1) SL can be used in a winning trade to protect profit.
(2) TP can be used in a lossing trade to reduce loss.
(3) TP in a winning trade can be called "stop profit" since the market is most likely not change it direction and you've stop the equity increase .
(4) SL in a lossing trade, in my opinion, should not be used since it is the worst thing we can get (compare to the other 3 cases)

Regardless the use of SL, it can be hunted. I seldom use SL.

Happy trade to All!

CuongVC

[TRADE]

Originally Posted by CuongVC

Hi All,

I see there are different ways in using SL & TP:
(1) SL can be used in a winning trade to protect profit.
(2) TP can be used in a lossing trade to reduce loss.
(3) TP in a winning trade can be called "stop profit" since the market is most likely not change it direction and you've stop the equity increase .
(4) SL in a lossing trade, in my opinion, should not be used since it is the worst thing we can get (compare to the other 3 cases)

Regardless the use of SL, it can be hunted. I seldom use SL.

Happy trade to All!

CuongVC

as long as you are aware of the amount you could potentialy lose by not cutting your losses, either with a stop or not.

just manage your risk, trade an amount that if the market did move against you x amount of pips you are comfortable realising a loss of this amount, if you had to.

trading with a no stop loss and being in a losing trade not comfortable with the amount of money that is diminishing from your account equity and hoping that the market will come back is an utter disaster.